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Technology Stocks : All About Sun Microsystems

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To: E_K_S who wrote (10303)	7/2/1998 9:13:00 PM
From: E_K_S	Read Replies (1) of 64865

ALL, Sun Microsystems Inc. (Reuters 10:49 AM ET 07/02/98) (SUNW)...Salomon Smith Barney said that it cut its rating on SUN MICROSYSTEMS INC to outperform from buy. It cuts FY 1999 EPS view to $2.65 from $2.80. FY 2000 EPS view is $3.00. Its price target is $52. ===================================================================== Notice that they maintain a price target of $52. Also earnings growth for FY 1999 to FY 2000 is only 7%. Either they view an overall slowdown in SUNW revenues (SUNW has maintained a 20% increase in year-to-year revenue growth for several years now) and/or the strong dollar will result in greater price competition (when reflected in foreign currencies) thus reducing margins. IMO I think they are being very conservative and I still stay with my $2.80 best guess for FY1999. SUNW's storage division will surprise the street. Also Europe will show very strong results. EKS

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