All About Sun Microsystems 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 : All About Sun Microsystems

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: cfimx	7/27/2006 12:30:20 AM
	Read Replies (1) of 64865

Richard Farmer, Merrill Lynch: “We continue to like the prospects for a turnaround at Sun based on cost cuts (most of restructuring benefit yet to flowthrough) and operating leverage on improving growth. Most investors remain skeptical; we think the stock can work as perception is changed. We believe intrinsic value is above $6.” Laura Conigliaro, Goldman Sachs: “We think investors with a higher-risk tolerance should be starting to buy SUNW…although we fear that SUNW could be subjected to an increasing amount of noice as investors scour the supply/chain for any incremental datapoints, the key drivers to the stock will be revenue growth and margins. Despite the June quarter’s lower margins, stronger revenue is the more important variable. this will be particularly true in the September quarter which is typically Sun’s most difficult…$5.15 price target.” Toni Sacconaghi, Bernstein Research: “While revenues were strong, product gross margins and operating expenses were both worse than our expectations. Q4 results and commentary on the conference call suggest to us that SUNW’s management currently appears more focused on growth than operating margin improvement…we believe SUNW’s expense performance in Q4 represents an inauspicious start for a new CEO/CFO team that has vehemently espoused a ‘maniacal focus’ on expenses as a key component of their turnaround plan.” Target price: $4. Andrew McCullough, Credit Suisse: “Despite the renewed growth in the company’s core server business and plans to address its cost structure, we remain skeptical of management’s longer term profitability targets. Looking beyond the seasonal strength of Sun’s fiscal Q4, we continue to believe that the secular realities of the server market and the competitive realties of the storage market will weigh on Sun’s ability to grow and deliver meaningful operating earnings.” Target price: $3.75.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next