>>I'll extend that prediction to the end of April. At that time, both Cisco and Lucent will be trading around $60 per share. Anyone else thinks so?<<
Don't think you'll have much of a consensus at $60 on LU.
>> Lucent: "Growing Like A Youngster" (LU)
Monday, March 30, 1998
As a key player in wireless, Internet, telephony and
networking, there's little wonder why Stephen Quickel
recommends Lucent Technologies (LU) as a core tech growth
stock. But act fast, he says, as the price of the former
AT&T division is moving as quickly as the hot markets it
serves. Lucent began 1998 at 75, rose to 104 at the March 5
market dip, and closed at 69 on April 2, the first day after
a two-for-one split. This prompted Quickel to issue a
post-split revised target price of 85.
"The company is huge but growing like a youngster," Quickel
says, noting $27 billion in sales and five-year growth
estimates of over 20% annually. The forward P/E is "rich" at
30 but the growth prospects make it worthwhile. Lucent is a
top contender in the battles for network bandwidth, and it's
the leading US telecom equipment and software supplier.
"We would prefer to buy it lower, of course, but advise
interested investors not to delay hopping aboard too long,"
Quickel says.<<
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