RESEARCH ALERT-Merrill upgrades McData rating, F2001 outlook
Reuters, 01/25/2001 09:06
NEW YORK, Jan 25 (Reuters) - Merrill Lynch analyst Thomas Kraemer said on Thursday he raised his rating for computer data storage company McData Corp. (NASDAQ:MCDT) and boosted his full-year 2001 earnings outlook after the company on Wednesday posted fourth-quarter results that topped Wall Street expectations.
In a research note, Kraemer said he raised his rating on McData shares to "buy" from "accumulate," and reiterated his 12-month price target of $88. He also raised his fiscal 2001 earnings outlook to 51 cents a share from 43 cents a share.
On Wednesday, the Broomfield, Colo.-based company posted a fourth-quarter net income of $14.3 million, or 12 cents a share, excluding non-cash charges. In addition, the company said it expected revenue growth in 2001 of 80 percent, up from its earlier guidance of 40 percent growth.
Kraemer wrote in his note, "Fibre Channel demand could approach a positive inflection point in 2001."
"We believe McData is poised to meet or exceed Street estimates over the ensuing quarters, and encourage investors to build positions," he wrote.
Shares of McData closed at $61-1/2 on the Nasdaq stock market on Wednesday.
Copyright 2001, Reuters News Service |
