From briefing.com:
12:55 ET ******
ASCEND COMMUNICATIONS INC. (ASND) 44 7/8 +2 11/16. Wide area networking solutions providers is adding to its recent
price gains as the stock got off to a good start this morning following a ratings upgrade from DLJ. The Wall Street firm raised its
rating on the stock from "market perform" to buy" while setting a 12-month price target of $55. Shortly thereafter, Cowen & Co.
issued an upgrade as well from "buy" to "strong buy" which has helped the stock maintain its upward momentum. Since the beginning
of the year, the stock has made a very nice rebound, gaining more than 83% in the process. While some of the price gains were
fueled by speculation that the company could be a takeover target, possibly by Lucent Technologies (LU 73 1/16 +1 3/8) given
ASND's low valuation, it seems that the company has been able to overcome its short-term problems and is doing just fine on its own.
In fact, since January, the stock has received thirteen upgrades from major Wall Street firms, with three upgrades coming from
Cowen & Co. On March 23, Cowen went from "neutral" to 'trading buy." It followed this move by upgrading the stock again on April
13 from "trading buy" to "buy," and today it raised its rating to a "strong buy." Only Adams Harkness has bucked the trend during this
period, downgrading the issue to an "underperform" from a "market perform," but this was after they had upgraded the stock on
January 20 from an "underperform." Analysts have taken note that ASND, coupled with Cisco Systems (CSCO 75 7/8 +1/2) and
FORE Systems (FORE 22 3/4 +1/4), has been able able to buck the trend afflicting other networking companies and actually grow top
and bottom line results while remaining optimistic for 1998. The fact that ASND has provided greater earnings visibility going forward
has been the major catalysts behind the stock's rebound. Although still shy of its 52-week high, the company continues to make steady
progress towards the $60 level. |
