Stratex Networks, Inc. (STXN) Message Board

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Technology Stocks : Stratex Networks, Inc. (STXN)

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To: Czechsinthemail who wrote (1132)	10/13/2000 9:39:38 AM
From: Rob Preuss	Read Replies (1) of 1762

Okay, lets look at some numbers... biz.yahoo.com Consensus EPS estimates are $0.57 for FY01 and $0.84 for FY02. So lets assume that EPS over the next 12 months (ending 9/30/01) will be $0.70/sh. Currently, STXN is trading at about $17/sh so the forward PE is about 24. Growth over the next 5 years is expected to average 31.4% annually (vs growth of 33.4% annually for telecommunications equipment manufacturers as a whole). I think our forward PE should at least equal our expected long term average annual growth... so I think we should reach a forward PE of 31.4 soon. Assuming no change in the EPS outlook, this means I think we should see $22/share soon. Here “soon” will probably mean “when all these issues of middle-eastern instability, US election, inflation/interest rate worries, and oil prices are of less concern.” About mid-November I’d think. Near term target: $22/sh by mid-November. Rob

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