Credit Suisse First Boston Initiates Coverage of Acterna Corporation With a Buy Rating
April 26, 2001 1:26:00 PM ET
PALO ALTO, Calif., April 26 /PRNewswire/ -- Credit Suisse First Boston Technology Group analyst David Dusenbury initiated coverage today of Acterna Corporation ACTR with a BUY rating.
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Acterna Corporation is a global communications test and measurement (T&M) company focused on technology solutions for Optical, Access, Wireless and Data Networks. "With 90% of total revenues coming from sales of high-growth communications test solutions, versus only 35% for Agilent and roughly 50% for TEK, Acterna represents a strong pure play in the T&M space," said Dusenbury.
Dusenbury believes Acterna is leveraged to the segments within T&M that appear to be showing strength. "While pure information on the communication T&M sector is hard to come by it appears those companies leveraged to R&D and manufacturing segments have reported weakness, while those leveraged to field service and monitoring have not. With 60% of T&M revenues leveraged to the latter, Acterna appears to be in a stronger position than other publicly traded portfolio plays," said Dusenbury.
The recent release of its portable OC-192 field testing unit is expected to contribute to top line growth in FY02 while continued integration of its recent merger is expected to result in somewhat faster bottom line growth.
EPS estimates for FY01 and FY02 are $0.19 and $0.35, respectively.
Credit Suisse First Boston (CSFB) is a leading global investment banking firm serving institutional, corporate, government and individual clients. CSFB's businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and retail online brokerage services. It operates in over 97 locations across more than 37 countries and 6 continents, and has some 28,000 staff worldwide. The Firm is a business unit of the Zurich based Credit Suisse Group, a leading global financial services company.
This communication is provided to you for informational purposes only. It should not be used nor is it considered as an offer to sell, or a solicitation of any offer to buy, any security or other financial instrument. This is merely an announcement of a Credit Suisse First Boston ("CSFB") research report and neither is, nor is it intended to be a comprehensive summary of the report or recommendation. The report referred to herein should be read in its entirety prior to making a decision to invest in any of the companies mentioned therein. If you would like to obtain a copy of this report, please contact your CSFB sales representative.
Credit Suisse First Boston is a member of the National Association of Securities Dealers, CRD number 816.
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