Robertson Stephens Reiterates Buy Rating on CPQ
>>>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 - news).
''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(HUH!?!?!?!), 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.<<<
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