ANALYST UPDATE: WALL STREET PLAYS HEAD GAMES
By Peter D. Henig
May 7, 1998
redherring.com
Mr. Kumar, along with his counterparts at Brown Brothers Harriman and Salomon Smith Barney, all upgraded Compaq to a Buy citing strong flows of Compaq's inventory out of the channel and strong moves by the company to incorporate the acquisition of Digital Equipment Corporation into its operations.
This is good news for investors who have taken a thrill ride with the stock since February when the stock sank from 35 to 25, and has been on a rocky course higher ever since. The overloaded channel, which reached a glutted peak in Q1 1998, is now emptying at a faster pace than analysts had anticipated, with numbers out of Compaq, IBM (IBM), and Intel indicating that current PC demand remains strong and will likely continue at a steady clip through the second half of the year.
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