ASND News...
For those of you who missed it:
BW0112 JUL 03,1996 11:52 PACIFIC 14:52 EASTERN
( BW)(MONTGOMERY-SECURITIES)(ASND) Montgomery Securities Initiates
Coverage of Ascend Communications with a BUY Rating
Business Editors
SAN FRANCISCO--(BUSINESS WIRE)--July 3, 1996--Montgomery
Securities Analyst Al Tobia has initiated coverage of Ascend
Communications (OTC: ASND) with a BUY rating.
Tobia expects the company to earn $0.83 per share in Fiscal Year
(December) 1996 and $1.25 per share in Fiscal Year 1997. His
near-term price target is $75, or 60x his 1997 EPS of $1.25.
Ascend Communications is a leading provider of remote access
router solutions for dial-in/dial-out analog and ISDN traffic.
Product solutions span the Internet POP, corporate office, and SOHO
markets. This quarter has been marked by product/pricing transition
- the company has significantly broadened its product offerings with
a number of new MAX (high-end) and Pipeline (low-end) offerings.
Accordingly, the company has used this quarter to bring down lead
times on key products and reduce inventories on older product in
order to smooth the transition to the new products. In addition,
fears have arisen over the company's ability to smoothly launch the
TNT, a new high-end, high port density version of the MAX. This has
resulted in a 25% decrease in share value from mid-May highs.
Tobia believes that the company experienced softness in the first
two months of the quarter due to new product releases and announced,
but unshipped, competitive product, and he has reason to believe that
business has picked up sharply in the month of June. Tobia explains
that the recent concerns are overdone and that investor discomfort
has reached its peak level regarding the June quarter.
As investors fears subside, the stock should return to the ranks
of the unblemished "hyper growth" technology stocks.
--30--ML/sf* cmf/sf
CONTACT: Montgomery Securities
Al Tobia, 415/627-2302
or
Ana C. Quadros, 415/627-3154
aquadros@montgomery.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: BANKING COMED COMPUTERS/ELECTRONICS
INTERACTIVE/MULTIMEDIA/INTERNET TELECOMMUNICATIONS
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473 |
