Robertson Stephens Reiterates Buy Rating on CPQ
Business Wire - January 24, 2000 11:06
SAN FRANCISCO--(BUSINESS WIRE)--Jan. 24, 2000--Robertson Stephens Managing Director and Senior Computer Systems Analyst Daniel Niles today reiterated his Buy rating on Compaq Computer Corporation (NYSE:CPQ).
"We are reiterating our Buy rating and $40 price target on Compaq, as we expect the company to report strong results for the third quarter, with positive trends going forward," said Niles. "We believe revenues could be several hundred million higher than our $10 billion revenue estimate for the quarter, driven by PC sales which were about 300,000 units higher than our forecast of 4.2 million units."
"We believe that Compaq also did a good job on the profitability front, which should enable operating margins to more than double from third quarter levels," said Niles. "We believe all of this should lead to earnings-per-share at least several cents higher than the consensus First Call estimates of $0.16."
"We believe the analyst meeting starting this Thursday will increase confidence in the stock as investors get to meet the new CEO, Michael Capellas, and share a more detailed description of his turn-around plans," said Niles.
Clients interested in receiving more information should contact their salesperson at (415) 781-9700. |
