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Technology Stocks : Compaq

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To: PeterR1700 who wrote (8213)10/30/1997 2:52:00 PM
From: Joe Griffin  Read Replies (2) of 97611
 
RESEARCH ALERT - Dell , Compaq restarted

NEW YORK, Oct 30 (Reuters) - Salomon Brothers said on Thursday it restarted coverage on shares of Dell Computer Corp and Compaq Computer Corp (CPQ) and in the process upgraded both of them to buy from hold.

Analyst Richard Gardner Jr said Compaq was leading vendor of desktop and servers in world, and is the most diverse of pure personal computer plays in terms of geographic reach, product breadth and customer base.Stock trading at all time high price-to-earnings ratio but should continue to trade at premium to Standard & Poor's 500 index.

Dell was leading direct, build-to-order manufacturer of personal computers and servers in world, he said. Believe Dell can maintain or even boost its return on investment capital in coming year with higher consumer mix, higher mix of internet sales and continued strong earnings growth, he said.

Dell stock fell 3-3/8 to 80-1/8 while Compaq fell 1-6/16 to 62-1/16.
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