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Goldman raises Sun estimate
Reuters Story - July 18, 1997 14:35
%US %DPR %HOT %RCH SUNW INTC MSFT V%REUTER P%RTR
PALO ALTO, Calif., July 18 (Reuter) - Goldman Sachs analyst
Laura Conigliaro raised her per-share estimates and target
price for Sun Microsystems Inc and maintained the stock on
Goldman's U.S. Recommended List, the firm said.
In a research note, the analyst said she has raised her per
share estimate for fiscal 1998 to $2.35 from $2.20, based on
revenue growth of 23 percent instead of her previous
expectation of 16 percent. Conigliaro also raised her target
price to $60, roughly 21 times her calendar 1999 estimate.
Sun shares, which had risen to four straight closing highs
this week, were unchanged at 45-9/16 in afternoon trade.
The stock was the third most actively-traded issue on the
Nasdaq market after Intel Corp and Microsoft Corp
, with more than 14.5 million shares changing hands by
late afternoon, some three times recent normal daily volume.
Noting Sun's revenue growth hit a 26 percent year over year
in the fourth quarter, despite a tough comparison to the year
earlier period with few new products, Conigliaro said Sun's
underlying growth rate now appears to have accelerated.
"In contrast, fiscal 1998 is awash with new products,
giving Sun ample opportunity to capitalize on its current
momentum," she wrote in the investment note.
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