SAN FRANCISCO, Oct. 13 /PRNewswire/ -- The following is being issued by
Robertson Stephens, a member of the National Association of Securities
Dealers, CRD number 41271:
October 13, 2000Avanex Corporation (Nasdaq: AVNX) ($81.86)
Buy
Paul Johnson, Communications/Networking
"We believe there exists an attractive opportunity for next-generation
Optical networking vendors and further believe that Avanex will emerge as one
of the critical vendors in this market," said Johnson. "We feel that the
recent market pullback has created an opportunity to create a position in
Avanex shares, at a significant discount to recent trading levels, with only
positive changes to the competitive fundamentals having occurred.
Furthermore, the stock also trades at an attractive valuation when compared
with its most important comparables, in our view. Avanex has produced
excellent revenue growth during the past several quarters, and we expect this
to continue for the foreseeable future. In addition, gross margins have
progressed nicely, and we believe the company could reach its three-year
target by next year, two years ahead of schedule. In addition, we believe the
company has made a couple of smart additions to senior management over the
past quarter, as well as closing a strategic acquisition." |
