MRVC: Continues To Lead The Price Performance Curve
Info from Bear Stearns (BEST)
BEST says MRVC is gaining Market Share and they reiterate their Buy Rating.
RE The NH2024:
BEST says that the NH 2024 has been shipping to major customers and will be generally available through distributors including Tech Data on December 1.
BEST views the NH 2024 as a very competitive offering, as similar
switching products by Bay Networks and 3Com are selling for $250
and $290 per port respectively. BEST says CSCO, which dominates
the high end, sells a similar product at an even higher price per
port.
BEST comments that IDC recently released its latest market share
survey in switching for first-half 1997, and that MRV's Nbase switching division increased its market share in the high-growth workgroup switching segment from 3.8% in 1996 to 4.6% in first-half 1997, an impressive 21% gain in six months. BEST adds that more importantly, this is the first time a major market research firm such as IDC includes MRV(NBase) in its survey.
BEST says that they believe this reflects the rising visibility of MRV among customers and industry analysts, which could eventually raise the company's visibility among investors.
BEST says they believe MRV has the broadest product offerings
in the 10/100 autosensing workgroup switching segment, an area
which could grow to $4.3 billion in revenues in 2001 from less
than $100 million in 1996, a 95% CAGR. Consequently, BEST thinks
that MRVC can achieve both revenue and EPS growth of 40-50% over the next three years.
BEST believes that MRVC's business conditions remain strong and the
company continues to enjoy robust demand for its products,
particularly in switching. BEST adds that moreover, demand in Europe seems to be strong and the company sees no slowdown in Asia despite the uncertain economic conditions in the region.
BEST comments that at 20x their 1998 EPS estimate of $1.25, MRVC shares appear very undervalued and should provide significant return to investors over the next 12 months. They maintain their estimates and reiterate their Buy rating on MRV stock. |
