All, From SSB today....
07/12/99 Lucent Technologies, Inc. (LU $71.56,1-M,Tgt $100.00) Alex M. --SUMMARY:--Lucent Technologies, Inc.--Telecommunications Equipment
*We cont to recommend LU w/a 1-M rating. In fact, we are raising our price target from $68 to $100
*Old target based on LU trading at 1.6x the S&P500 or about the same rel multiple as its peers and the group's average over the last 10 years.
*LU,in our opinion,can return to old high of 2x mkt mult on EPS 12 mos fwd.
*Multiple expan should be driven by: above average growth potential rel to peers; strong position based on a broad range of products in traditional circuit-based & next generation packet-based technologies; & margin expan
*Recent contract awards such as soft switch w/LVLT as well as the SS7 & IP gateways highlight LU should be able to gain mkt share by serving the evolutionary needs of incumbent telephone operators & revolutionary requirements of next generation carriers.
07/12/99 Lucent Technologies, Inc. (LU $71.56,1-M,Tgt $100.00) Alex M. --EARNINGS PER SHARE--------------------------------------------------------
Later,
Sueponine. |
