All, From SSB research posted 5:15p.
Sun Microsystems, Inc. (SUNW)#
SUNW: Mid-Qtr CC - Business Very Strong and 1M (Buy, Medium Risk)
Above Expectations Mkt Cap: $196,764.9 mil.
August 15, 2000 SUMMARY
* Sun described business as very strong and above
SERVER & ENTERPRISE expectations, particularly in the Americas and Asia
HARDWARE Pacific regions. By product, work group, mid-range,
John B. Jones Jr. high-end and Netra servers are seen especially strong,
as is storage.
* Order growth is running higher than revenue gowth (we
Craig A. Ellis forecast 40%) suggesting that the $1.84B backlog may
not be worked down during the qtr.
* Industry shortages are seen in HDD drives and custom
ASICs but Sun indicated the issues could be managed
through and are not huge or serious.
* Overall, Sun believes it is taking share from other
vendors as its business momentum stays strong.
* Today's message supports our thesis that Sun is
benefitting from surging Internet computing demand and
is taking share from second-tier players. We reaffirm
our $135 target with our EPS estimates under review for
revision.
FUNDAMENTALS
P/E (6/01E) 84.5x
P/E (6/02E) NA
TEV/EBITDA (6/01E) 47.0x
TEV/EBITDA (6/02E) 39.0x
Book Value/Share (6/01E) $5.59
Price/Book Value 20.4x
Dividend/Yield (6/01E) $0.00/0.0%
Revenue (6/01E) $20,505.0 mil.
Proj. Long-Term EPS Growth 21%
ROE (6/01E) 24.2%
Long-Term Debt to Capital(a) 17.8%
SUNW is in the S&P 500(R) Index.
(a) Data as of most recent quarter
SHARE DATA RECOMMENDATION
Price (8/14/00) $114.06 Current Rating 1M
52-Week Range $114.06-$36.66 Prior Rating 1M
Shares Outstanding(a) 1,725.1 mil. Current Target Price $135.00
Convertible No Previous Target Price $135.00
I just love this stock.
Sueponine. |
