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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 168.81

-3.0%

1:21 PM EST

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To: Dennis Roth who wrote (20087)	3/8/2002 9:21:36 AM
From: Dennis Roth	Read Replies (1) of 196656

Danske Securities upgraded Ericsson to "Hold" from"Sell" in the wake of Sony-Ericsson's new handset launch this week, which the bank said has improved both sentiment and liquidity significantly. [snip] Earlier however, JP Morgan said it is unconvinced by the new handset portfolio, while Merrill Lynch cut its sales expectations for both Ericsson and Nokia on concerns that operator investment may fall 5 pct in 2003, compared with 2002. Despite its upgrade, Danske Securities described the Ericsson share's current valuations as "fairly demanding", the near-term outlook in the telecoms market as "challenging", and the future impact of the Sony venture as "uncertain". Danske Securities added that it expects the new Sony-Ericsson venture to do no better than break-even this year making its short term impact on Ericsson very limited. It added that it does not expect to see most of Sony-Ericsson's new handset portfolio being shipped until the third quarter, with volume production not commencing until the fourth quarter. The bank said market conditions remain challenging, with weak demand due to the ongoing global depression in operator capex and slow uptake of GRPS and 3G, which will weigh on Ericsson's attempts to revive sales. "We maintain our estimate of a 10 pct decline in wireless operator capex this year. In order to adopt a more (positive) stance on the share, sales would have to pick up meaningfully," said Danske Securities. Danske Securities also reiterated that it expects the first quarter to be weak for Ericsson, and believes that the company's full year 5 pct-plus operating margin target is too optimistic. Despite this Danske Securities said it sees improved sentiment and liquidity sustaining the share in the high 40 skrs going forward. sjr/vs NNN Copyright AFX 2002, All Rights Reserved. Snipped from library.northernlight.com == Danske and Morgan seem to have a difference of opinion about the new handsets.

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