SONS Message Board - Msg: 23119082

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Technology Stocks : SONS

SONS 7.830

+2.8%

Nov 28 4:00 PM EST

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From: Home-Run	12/20/2006 6:59:45 PM
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RBAK valuation Ericsson is paying 5.7 times Redback's projected 2007 revenue. Applying that valuation to SONS implies a price of >$10. And I would argue that SONS deserves a higher multiple than RBAK which is the #3 player in a more mature market vs. being #1 in a rapidly- emerging market. At $10 SONS would be selling at a P/E of 48, not outrageous when consensus EPS is projected to grow 40% in 2007. Since I believe Sonus will beat current consensus, I think the actual valuation of SONS is currently much lower than that. red Reply \| Forward Message #16297 of 16300 < Prev \| Next

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