Chase H&Q: Don't Get Lost in the Noise
Chase H&Q Issues Comments on ADI, NUFO, IBI, PCYC, CORI, NTAP, GMST
cnetinvestor.com
* Network Appliance (NTAP) $96.25 - $35B mkt cap:
Don't Get Lost in the Noise: A Must Own Stock for Long-Term Investors; Reiterate STRONG BUY.
· NetApp reported F2Q-01 results $261/$0.10, ahead of our $255M/$0.09 estimate.
· Book to bill was greater than one-fears of dot-com slowdown not evident in results or forecasts.
· Gross margins swelled to 61.9% on strong sales of new, high-end F840 and add-on software.
· Total units surpassed 3,000; NetCache revs grew 100% q/q to 8% of sales, 25% of total units.
· Building a franchise-spending ahead of growth provides leverage for CY01 and beyond.
· Noise-EMC IP4700, dot-com exposure, slowing rev growth-was not resolved on conf call.
· Raising est.: F3Q-01--$295M/$0.11 vs. $280M/$0.10; FY01-- $1.1B/$0.41 vs. $1.1B/$0.39.
· LT, large-cap growth investors should cut through the noise and buy on expected NT weakness.
Here Here
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