Jenna- Opinion on AETH? Got an upgrade and nice target this morning from H&Q-
WR Hambrecht & Co. Issue Comments on SABA, XLNX, AETH,
SCNT and RBAK
1/18/01 7:57:00 AM
Source: WR Hambrecht & Co.
San Francisco, CA, January 18, 2001, 7:45 PST
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Saba Software, Inc.
NASDAQ: SABA
Rating: BUY (We anticipate the stock will outperform its peer group over the next 12 months.)
Sector: eLearning
Price Target: $30
SABA: Business Momentum Remains Strong
Trace Urdan reports that business momentum remains strong at Saba. The outlook of Saba
management remains positive for 2001, despite a more pessimistic view of market conditions
presented by Click2learn's management team on Tuesday. We have not yet heard of budget cutbacks
in discussions with corporate buyers as recent as December. Furthermore, we expect that given its
relatively small share of the existing training market and its generally favorable cost structure
compared to instructor-led training, that e-learning will continue to grow dramatically through 2001,
even in a tougher economic climate. Maintain Buy Rating.
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Xilinx
NASDAQ: XLNX
Rating: NEUTRAL (We anticipate the stock will perform in-line with its
peer group over the next 12 months.)
Sector: Communications Components
XLNX: Visibility Clouded; Reducing Estimates
Jim Liang reviews Xilinx's December quarter results, reduces
estimates, and maintains Neutral rating. December quarter EPS of
$0.31 and December quarter revenue of $450.1 million were both in
line with our estimates. The Company is guiding for a flat March
quarter and believes the inventory correction could last through the
June quarter. We are reducing our CY:01 revenue growth rate
assumption from 33% to 25% and reducing revenue and EPS
estimates for fiscal 2001 and fiscal 2002. We maintain our Neutral
recommendation.
To view the report online, click here:
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Aether Systems
NASDAQ: AETH
Rating: BUY (We anticipate the stock will outperform its peer group over the next 12 months.)
Sector: Wireless
Price Target: $100
AETH: Selected by E*TRADE to Provide Wireless Online Financial Services for RIM Blackberry
Devices
Peter Friedland discusses announcement that Aether was selected by E*TRADE to provide wireless
online financial services for Research in Motion (RIM) Blackberry devices. Under yesterday's
announcement, Aether will incorporate E*TRADE's wireless financial services into its Blackberry
offering to provide an integrated package. We view the E*TRADE announcement positively, as
E*TRADE expands Aether's financial services enterprise customer base, which already includes
Morgan Stanley Dean Witter and Charles Schwab. Maintain Buy Rating.
To view the report online, click here:
wrhambrecht.com
For all other WR Hambrecht + Co research, click here:
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Scient
NASDAQ: SCNT
Rating: NEUTRAL (We anticipate the stock will perform in-line with its peer group over the next 12
months.)
Sector: eServices
SCNT: Results In Line with Pre-Announcement; Outlook Still Cloudy; Maintain Neutral Rating
Greg Gore maintains Neutral rating on Scient after the Company reports earnings in line with
pre-announced figures. Yesterday, January 17, 2001, after the market close, Scient reported revenues
of $79.8 million, which is in line with the $80 million pre-announced figure. Management provided
guidance for the current quarter only, with no outlook for FY2002. Given the uncertain outlook for
Scient, we reiterate our Neutral rating.
To view the report online, click here:
wrhambrecht.com
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Redback Networks
NASDAQ: RBAK
Rating: BUY (We anticipate the stock will outperform its peer group over the next 12 months.)
Sector: Communications Infrastructure
Price Target: $80
RBAK: Reports Solid Q4; Maintaining Buy Rating But Reducing Price Target Tim Savageaux reviews
Redback's solid fourth quarter results and maintains Buy rating. We are increasing our 2001 top line
estimate for Redback to $745 million from $675 million, representing 168% annual revenue growth.
However, we are leaving our 2001 bottom line estimate of $0.52 per share unchanged, as lower gross
margins are expected to offset higher revenues, with operating expenses remaining virtually
unchanged. Finally, we expect operating margins to improve to 20% by year-end from 4.6% this
quarter. Maintain Buy Rating.
To view the report online, click here:
wrhambrecht.com
For all other WR Hambrecht + Co research, click here:
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