Merrill on SUNW Oct. 11, '01
Based on residual income, our preferred methodology, all of the stocks in
our coverage have upside potential, but the rewards greatly differ. We ranked
our coverage in order of estimated upside: Brocade (BRCD, D-1-1-9, $18.79),
Inrange (INRG, D-2-2-9, $5.85), McData (MCDT, D-2-1-9, $12.80), Unisys (UIS, C-
3-2-9, $8.20), Sun (SUNW, C-2-2-9, $9.07), NCR (NCR, C-2-1-9, $31.27), EMC
(EMC, C-3-1-9, $12.75), HP (HWP, B-3-2-7, $17.04), IBM (IBM, B-3-1-7, $97.14),
and Network Appliance (NTAP, D-3-2-9, $9.41). Upside seems to fall in three
buckets. The storage networking names are all above 100%, but are also the
most expensive and have the highest implied growth rates. NCR, Sun, and Unisys
all offer nearly 50% or greater. EMC, HP, IBM, and Network Appliance have a
range from 27% to 10%.
RESEARCH COMMENT: 30228403
OCT 11, 2001
Kraemer |
