09:24 ET BofA cuts price targets and estimates on EMS co's
Banc of America lowers price targets and some estimates for EMS co's; cuts CLS price target to $44 from $55 and lowers 2002-03 rev/EPS ests due to the risk that IBM (largest customer) may have substantial excess inventory in the June qtr; cuts FLEX price target to $22 from $25 and lowers 2002-03 rev/EPS ests due to weakness in IBM, RSTN, ETS, LU, and slowing Xbox momentum; cuts SANM price target to $18 from $25; and cuts SLR price target to $12 from $15.
09:06 ET IBM shortfall should have limited impact on Emulex, Qlogic-- TWP
Thomas Weisel believes that IBM's negative preannouncement should have a limited impact on EMLX and QLGC; for EMLX, CPQ (EMLX's largest customer) should make up for any potential weakness at other key OEMs like IBM and EMC, and firm continues to believe that biz with IBM was at or close to plan; for QLGC, co has the most diversified biz in the SAN space and IBM accounts for less than 5% of sales, while co should benefit from strength in low-end server and storage lines with DELL, CPQ, and SUNW.
22 ET Robbie cuts estimates on storage stocks
Robertson Stephens cuts estimates on stocks in the storage sector (their index is composed of BRCD, EMC, EMLX, LGTO, MCDT, NTAP, QLGC, and VRTS); as justification for the cuts, firm cites: field checks indicating caution on the part of IT buyers for Q2 or longer, disappointing results from storage and software vendors, and the belief that 2002 rev and earnings targets provided by storage co's on Q4 conference calls and/or consensus ests are likely too high. |
