09:11am EDT 31-Aug-00 First Security Van Kasper (Chet White 310-443-3406) MRVC
First Security Van Kasper Morning Research Notes
First Security Van Kasper RESEARCH NOTES
August 31, 2000
Company Update
MRV Communications, Inc.* (NASDAQ: MRVC $75 3/16, Strong Buy) Price Target: $158
Chet White (310) 443-3406
ú We believe that MRV's shares offer significant near-term upside given the
multiple value-driven catalysts in the September/October timeframe. These
catalysts include:
ú Luminent (Optical Components/Subsystems) Event: IPO-filed as of July 26;
bankers include CSFB, CIBC, RS, Piper and FSVK.
ú Optical Access (Wireless Optics) Event: S-1 filing-management stated that it
plans to file an S-1 within 90 days from July 27.
ú Itouch (Broadband Access) Event: expects commitment to file S-1, leading to
IPO 1Q01.
ú Zaffire (Optical Networking) Event: expects first shipment of Optical Switch.
ú Charlottes Web (Terabit Router) Event: expects to announce CEO. They now have
four betas.
ú Zuma Networks (High Touch Router) Event: expects to announce CEO and deliver
beta news.
ú In addition to these catalysts, we believe that the increased Wall Street
analytical coverage associated with MRV's multiple pending banking deals will
lead to a new influx of top-tier institutional buying. Currently, only
approximately one-third of the top institutional holders of our other NextGen
Optical Networking companies ((Redback Networks, Inc. (NASDAQ: RBAK $137, Strong
Buy), Sycamore Networks, Inc. (NASDAQ: SCMR $139 9/16, Strong Buy), Juniper
Networks, Inc. (NASDAQ: JNPR $203 7/16, Strong Buy), Foundry Networks, Inc.
(NASDAQ: FDRY $86 1/16, Strong Buy)) own MRV. We highly recommend that investors
take full positions ahead of these value-driven catalysts. We reiterate our
Strong Buy rating on the shares of MRV Communications with a 12- to 18-month
price target of $158. |
