Interesting comments on HTCH technology:
16:03 DJS Hutchinson Technology Shares Climb On Goldman Sachs Report
16:03 DJS Hutchinson Technology Shares Climb On Goldman Sachs Report
NEW YORK -(Dow Jones)- Hutchinson Technology Inc. shares surged Monday
after Goldman Sachs & Co. initiated coverage of the company on its recommended
list and set a 12-month price target of $60.
Shares of Hutchinson (HTCH), which makes disk-drive suspension
assemblies, closed up $6.25, or 20%, to end at $37.375 on volume of 2.8
million shares, compared with average daily volume of 763,133.
Goldman said Hutchinson has a "significant opportunity" to increase
earnings through the continued acceptance of its Trace Suspension Assembly, or
TSA, family of products.
Goldman set earnings estimates of $2.40 a share for fiscal 1999, and
$3.40 a share for fiscal 2000.
In a research note, Goldman Sachs analyst Rick Schutte said Hutchinson
is expected to benefit from a healthy demand for hard-disk drives.
The hard-disk-drive industry, while remaining price competitive
throughout 1999, will grow at 15% to 20%, according to Schutte.
With 70% market share, Hutchinson should be a key benefactor of this
accelerating demand for low-cost hard disk drives, Schutte said in his
research note. "We anticipate strong earnings momentum," he wrote.
Currently, the company is facing production constraints, with demand
exceeding supply by 20%.
Copyright (c) 1999 Dow Jones & Company, Inc.
All Rights Reserved.
(:HTCH)
03/01 4:03p CST
spoke with IOM this afternoon regarding analyst conference they just held. they gave guidance that they'll meet their previous projection of + or - .02 for this qtr. new prod. ramp up to bring larger impact on next qtr. they stated analysts appeared satisfied with current direction relative to new product roll out along with media issue (shortage) with 250 and connector issue (shortage) with clik! both shortages will be resolved this month. |
