Deutsche Banc says BUY COMPAQ
by: skeptically 11/07/01 10:52 am
Msg: 260371 of 260374
Deutsche/PC Cos-2:Sees Gateway Benefiting As Direct Vendor
11/07 10:30 AM (DJ)
Story 4894 (AAPL, CPQ, DELL, GTW, HWP)
Deutsche Banc's Elling sees Compaq Computer Corp.'s (CPQ) proposed merger with Hewlett-Packard Co. (HWP) as a positive event, and initiated coverage of Compaq's stock to a buy.
Elling's 12 -month price target for Compaq was set at $12 a share, or eight times his 2003 estimate for earnings before interest, taxes, depreciation and amortization.
Shares of the company closed Tuesday at $8.50 each and are currently trading at $7.90, down 7%.
Gateway Inc. (GTW) was given a 12 -month price target of $9 a share, or 7.5 times his 2003 EBITDA estimate. Gateway shares are currently unchanged at $7.14.
He initiated coverage of the company at a buy rating, partly because "Gateway still very much benefits from its roots as a direct vendor," bypassing the retailers.
Apple Computer Inc. (AAPL) received a market perform rating from the analyst, because the stock is already trading at 17 times his fiscal 2002 EBITDA estimate, and 13 times his fiscal 2003 EBITDA estimate.
He gave Apple's stock a price target of $18 a share, just lower than Tuesday's closing price of $19.46. Shares are currently trading at $19.55, down 0.%.
-Amy Braunschweiger, Dow Jones Newswires; 201 -938 -2205; amy.braunschweiger@dowjones.com
(END) DOW JONES NEWS 11 -07 -01
10:30 AM |
