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Technology Stocks : DSC Communications
DIGI 0.00010000.0%Jun 3 1:06 PM EST

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To: Dave Chanoux who wrote (3313)1/8/1998 1:03:00 PM
From: Moe Damghani  Read Replies (1) of 4429
 
Thursday January 8, 12:13 pm Eastern Time

RESEARCH ALERT - DSC Communications begun

NEW YORK, Jan 8 (Reuters) - J.P. Morgan said Thursday it started coverage on shares of DSC Communications Corp with a market perform rating.

-- Company's main business lines look more stable during first nine months of 1997, having endured extremely volatile year in 1996, analyst Gregory Geiling said in research note.

-- But Geiling remains concerned about lack of visibility for earnings estimates.

-- ''Specifically, we are cautious about DSC's relationship with MCI Communications Corp (Nasdaq:MCIC - news) as a result of capital spending concerns surrounding the WorldCom Inc (Nasdaq:WCOM - news)/MCI merger,'' he said in research note.

-- Also uncertain about DSC's ability to execute on stated restructuring and revenue goals for its Denmark operations in 1998, he said.

-- Estimates company will achieve compound revenue growth of 19 percent and earnings growth of 46 percent through 1999.

-- Stock down 1/2 to 23-1/2.

((New York Newsdesk, 212-859-1610)
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