RESEARCH ALERT - Cabletron upped by Goldman
Reuters, Feb 11, 2000 09:50 hrs
NEW YORK, Feb 11 (Reuters) - Goldman Sachs said on Friday that it raised Cabletron Systems Inc. (NYSE:CS) to market outperformer from market performer.
-- On Thursday the company announced its plans to reorganize its core business into four independent operating companies in order to better focus on high-growth areas of the communications market.
-- The new companies - Riverstone Networks, Enterasys Networks, Global Network Technology Services and Aprisma Management Technologies - will focus on service provider, enterprise electronic business, professional services and infrastructure management.
-- Currently trading is halted on the New York Stock Exchange, with the share price indicated as high as $42, up from Thursday's close of 34-5/16.
-- Also on Friday, Credit Suisse First Boston called the reorganization positive. "This separation of businesses is positive for investors as it unlocks hidden value in certain high growth segments," wrote analyst Paul Weinstein in a research note.
-- Weinstein said he estimates that the businesses are worth $40-45 a share, which is a realistic valuation given the limited information available on size, growth and profitability of the operating unit. 859-1860))
Copyright 2000, Reuters News Service
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