Tom it looks like someone else thinks the same as you.
BancBoston Robertson Stephens Upgrades SIII to a Buy Rating
SAN FRANCISCO, June 16 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens digital media infrastructure analyst Arnab K. Chanda today upgraded S3, Inc. (Nasdaq: SIII), to a Buy rating from a Long-Term Attractive. The company yesterday announced that it will own 252 million shares in UMC in exchange for its 16-percent ownership in USC, with about $500 million implied value. S3, headquartered in Santa Clara, Calif., is a supplier of multimedia acceleration hardware and software.
"We are raising our rating on S3 from a Long-Term Attractive to a Buy and are establishing a 6-month price target of $15, based on underlying asset value and improving business fundamentals," said Chanda. "We believe that S3's net asset value is about $10 per share, and the value of the UMC investment currently exceeds the entire market capitalization of the company. In addition, we believe that Savage4 is driving a new design win cycle in the desktop business, while the mobile products should see good revenues beginning late 1999.
"We urge investors to aggressively accumulate the stock, as we believe the company is on track to exceed our estimates for the second quarter," said Chanda. "We are slightly raising our earnings estimates based on the $8.4 million-per-quarter in cash payment from UMC. Our calendar 1999 earnings per share estimate increases from ($0.54) to ($0.39). We expect the company to comfortably exceed our estimates in the second half of 1999."
Clients interested in receiving more information should contact their salesperson at 415-781-9700.
BancBoston Robertson Stephens is a leading international investment banking firm focused on growth companies. The firm's 55 equity and high yield research analysts cover more than 600 companies. Additional information is available upon request.
The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of BancBoston Robertson Stephens, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." BancBoston Robertson Stephens from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this Report and the opinions contained herein are based on sources believed to be reliable, BancBoston Robertson Stephens has not independently verified the facts, assumptions and estimates contained in this Report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. BancBoston Robertson Stephens, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. BancBoston Robertson Stephens International Ltd. is regulated by the Securities and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of BankBoston N.A., and are subject to investment risk, including possible loss of any principal amount invested.
SOURCE BancBoston Robertson Stephens
CO: BancBoston Robertson Stephens; S3, Inc.; BankBoston N.A.
ST: California
IN: FIN CPR
SU: RTG
06/16/99 10:32 EDT prnewswire.com
Good investing to all RGW |
