TLAB info? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TLAB info?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bob Monard who started this subject	10/16/2003 8:55:54 PM
From: mopgcw	of 7342

GS Note: Tellabs, Inc. EPS (FY Dec) 2003E ($0.26), 2004E $0.01 In-Line/Neutral (TLAB) $7.46 No Upside. Despite two positive catalysts on the horizon, we see limited upside to shares. The two positive catalysts are: #1 earnings estimates increasing on further cost cuts, and #2 contract announcements for new products. Beyond these near-term catalysts, Tellabs' 80%+ exposure to declining market segments and low level of new product traction will not likely generate strong enough top-line growth to drive sustainable share price appreciation. Expectations of 7% sales growth into 2004 are already reflected in shares. Additionally, we believe current valuation levels reflect a strong outlook. Excluding cash, shares trade 42x our new 2005 estimates, and 25x the high side of FirstCall consensus estimates - this is too high a multiple for a low single digit growth stock and well above pre-bubble normal levels. We retain IL/N rating.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next