Powerwave Tech (PWAV) 18.82 +0.52: -- Before Open -- H.C. Wainwright initiates coverage with an Accumulate. Firm believes PWAV will benefit from the move to outsourcing by wireless infrastructure OEMs, the growth of the multi-carrier power amplifier market, and the construction of 3G networks. Risks include: PWAV trades at a premium valuation, firm's model suggests that company will lose money through March 2002 quarter, current telecommunications equipment environment remains challenging, and PWAV's largest customer, Nortel, has accounted for close to one-half of revenues in most recent quarters.
Kopin (KOPN) 15.22 +0.40: -- Morning Note -- Pacific Growth Equities upgrades to BUY from Market Perform and ups price target to $20 from $18. Alpha Industries (AHAA) and Conexant (CNXT) announced today that they plan to merge Alpha with Conexant's wireless group, forming a new separate entity. While the deal is not expected to close until Q2:02, firm views this move as a strategically positive event for Kopin. By combining forces, the newly merged entity should be able to leverage expertise in switches from both companies. The most compelling factor, in firm's opinion, is combining the IC design with CNXT's assembly, test and module manufacturing facility in Mexico. Firm believes new entity should be better positioned against RFMD than either would have been as stand alone units. As the primary supplier of HBT wafers to both companies, Kopin should benefit from the improved total market position the new entity is expected to hold. |
