Hi Pat,
The first article has a rather aggressive price target given the EPS growth rates year over year of 33 and 20. I don't agree with the 39 price target.
The second article is good news as the margins on shelters are the highest of the items in their product line.
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Friday July 23, 1:13 am Eastern Time
Andrew may rise again - Business Week
NEW YORK, July 22 (Reuters) - Communications equipment maker Andrew Corp., once hot in 1996 and then not in 1998, may buck Wall Street's forecasts, according to one analyst, Business Week said.
Michael Jamison of Brandywine Asset Management, said Andrew is worth 39, six times its book value, and expected Andrew to earn 75 cents a share in 1999, $1.00 in 2000 and $1.20 in 2001, Business Week said.
Walter Piecyk, an analyst with PaineWebber who recently upgraded the stock to an attractive buy, thinks the company will turn in the second half and benefit from increases in U.S. spending plans of cellular and PCS operators, Business Week said.
Shares of Andrew Thursday closed at $20.875 per share, near its 52-week high of $22.875. In early 1997 shares hit $41 before crashing to $10 by late 1998, Business Week said.
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Thursday July 22, 4:26 pm Eastern Time
Company Press Release
Andrew Awarded $14 Million Level 3 Communications Contract
ORLAND PARK, Ill.--(BUSINESS WIRE)--July 22, 1999--Andrew Corporation (Nasdaq: ANDW <http://finance.yahoo.com/q?s=andw&d=t> - news </n/a/andw.html>) was awarded a $14 million contract to supply and install equipment shelters along Level 3 Communications' (Nasdaq:LVLT <http://finance.yahoo.com/q?s=lvlt&d=t> - news </n/l/lvlt.html>) fiber-optic communications network in the United States and Canada. The Level 3 network will combine both local and long distance networks, connecting customers end-to-end across the United States and in Europe and Asia.
The contract involves the design, manufacture, and installation of shelters at 96 sites along Level 3's US and Canadian route. All of the shelters are projected to be installed and operative by December 2000.
The Level 3 shelters will be made at Andrew Corporation's shelter manufacturing facilities in Newnan, Georgia and Sacramento, California. Andrew will custom-fit each shelter with customer-supplied equipment. The shelters will then be shipped to the Level 3 sites and installed.
For further information about Andrew shelters, call the Andrew Customer Support Center at 1-800-255-1479 and request packet number 458 (bulletin number 1520E).
Andrew Corporation is a global supplier of communications systems equipment and services. Major markets are wireless communications -- which includes cellular, personal communications services, and land mobile radio -- broadcast, and common carrier. Andrew is an S&P 500 company whose common stock trades on The Nasdaq Stock Market© under the symbol: ANDW.
For further information on Andrew products and services, including the text of this release, visit our Web site at <http://www.andrew.com> |
