scba & thread,
Here's a repost of the Lehman upgrade with a new piece of information. Lehman, as listed below, served as an advisor to the CPQ/DEC merger, and IMO, would have the best handle on the future prospects of the new Compaq.
P.S. Compaq has redesigned their web site to incorporate Digital & Tandem. Very nice - compaq.com
_____________________________________________________________________________________
Compaq Upgraded by Lehman, but EPS view vary
NEW YORK, June 12 (Reuters) - Compaq Computer Corp. won a new buy rating from at least one analyst Friday as Wall Street brokerages juggled estimates for the company after the closing Thursday of its acquisition of Digital Equipment Corp.
But in the wake of a meeting with company executives Thursday night, analysts' forecasts for the combined Compaq ranged all over the map, with new 1998 year estimates stretching from $0.45 to $0.77, according to several analysts.
Compaq stock headed higher at the opening of trading, gaining 5/8 to 28-11/16.
Lehman analyst Kimberly Alexy said she boosted her rating on the stock to buy from outperform following the meeting, after six months of putting coverage on hold due to Lehman's role an advisor to Digital in the Compaq merger deal.
While maintaining his buy rating, Credit Suisse First Boston analyst Charles Wolf said he set new preliminary estimates of $0.45 per share for 1998 and $2.00 for 1999. Prior numbers for Compaq as a standalone company are not comparable.
Alexy set an estimate for the combined company of $0.77 per share for the 1998 year, and $2.00 for 1999, a figure she called "conservative" if the integration of Digital into Compaq proceeds according to plan.
Other analysts said their preliminary 1998 estimates landed within the range set by the two analysts, but declined to offer specific figures.
Analysts said Compaq executives remained sketchy on new financial details at the Thursday meeting, making it hard for them to predict when expected financial synergies from the Digital merger will begin to give Compaq's earnings a kick.
Alexy said she expected to see $0.50 per share of added earnings for Compaq in 1999 thanks to the Digital merger. |
