Hiya Michael,
A tempered comment.
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Compaq Computer Corporation
NYSE: CPQ $20.04
Buy
2001E EPS: $1.15, New
2002E EPS: $1.35, New
Eric Rothdeutsch, Semiconductors/Computer Hardware
“We are assuming coverage of Compaq with a Buy rating,” said Rothdeutsch. “We have established revenue and EPS
estimates of $45.2 billion and $1.15 for F01, and $51 billion and $1.35 for F02, respectively. We believe Compaq
should benefit from what we expect to be improved PC demand in the 2H:C01, improving IT spending in Europe,
accelerating Windows 2000 attach rates, and continued spending by enterprises on critical infrastructure projects. Our
12-month price target is $29, or 25.2 times our new F01 EPS estimate of $1.15, a level that we believe is reasonable
given the valuations of comparable PC companies and where the stock has traded on an historic next twelve month
P/E.”
investor.cnet.com |
