[First Security Van Kasper Initiates Coverage: Buy!]
Thursday October 12, 10:11 am Eastern Time
Press Release
SOURCE: First Security Van Kasper
First Security Van Kasper Initiating Coverage on
DMC Stratex Networks, Inc. With Buy Rating
SAN FRANCISCO, Oct. 12 /PRNewswire/ -- The following is being
issued by First Security Van Kasper, a member of the National
Association of Securities Dealers, CRD number 7665:
Kevin Dede and J.P. Mark, Telecommunications analysts at FS
Van Kasper, have initiated coverage on DMC Stratex Networks,
Inc. (Nasdaq: STXN - news; $17) with a Buy rating and price
target of $25.00.
Below are direct quotations from Mr. Dede & Mr. Mark's
research report:
We are initiating coverage of DMC Stratex Networks, Inc.
(DMC) with a Buy rating. DMC is the leading manufacturer
of wireless terrestrial communications equipment. Demand
for wireless telecom infrastructure and access equipment
should drive the 30%+ revenue increase that we forecast
for next year.
Formerly known as Digital Microwave and founded in 1984,
DMC Stratex Networks has established a reputation as the
foremost developer of electronic components and systems
for the wireless industry, selling more than 170,000
radios in 95 countries.
Of the $68.5 million in revenues generated in the June
quarter, only 16% of the total were collected in the U.S.
DMC is established in Europe, South America, Asia, and
Africa-well positioned to capitalize on global market
demand.
The company markets its products to service providers
directly, as well as indirectly through its relationships
with original equipment manufacturers (OEMs) such as
Lucent Technologies, Inc., Nokia Corporation, Northern
Telecom, Motorola, Inc., and Siemens AG.
We think that DMC shares should trade closer to 8x, the
market capitalization-to-sales group average multiple.
Based on a market capitalization-to-2001 sales multiple
of 4x, our price target is $25, which offers potential
share appreciation of 32% over the next 12 months.
First Security Van Kasper makes a market in the shares of DMC
Stratex Networks, Inc.
First Security® Van Kasper is a private brokerage and
investment banking firm. Since its founding in 1978 as Van
Kasper & Company, the firm has been providing exceptional
services and original investment advice to a select group of
investors and businesses. The firm's offices are located in
San Francisco, Fresno, Los Angeles, San Diego, Newport Beach,
San Jose, Sacramento, and Walnut Creek, California, as well
as Phoenix, Arizona and New York City, New York.
Investments made through First Security Van Kasper: (1) are
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including possible loss of principal amount invested.
The study on these pages is not a complete analysis of every
material fact regarding any company, industry or security.
The opinions expressed herein reflect the judgment of the
author at this date and are subject to change without notice.
Facts have been obtained from sources considered reliable,
but are not guaranteed. First Security Van Kasper, its
directors and employees and their families may have a
position in the securities of the companies described herein,
and may make purchases or sales while this report is in
circulation. Additional information is available upon
request.
SOURCE: First Security Van Kasper
[If the group average market-cap-to-sales ratio is 8,
why target STXN/DMC at only 4? My target is $50/sh.] |
