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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: A. Edwards who wrote (8369)	6/29/1999 8:12:00 AM
From: Techplayer	Respond to of 21876

A.Edwards, This is the part that I like: · With growing demand for next generation networks, and a successful acquisition in this area under its belt, we believe that Lucent stock should trade at 2-1/2 times its growth rate, or 45-times our calendar 2000 EPS estimate of $1.62 Now, If LU does $1.2 this year and $1.6/share or so next year, 2.5X revenue growth at 20% would yield 80, while 2.5X earnings growth would yield a PE of 83 times EPS. That would be pricey, but estimates yield a price in the 70's now and 80's + for next year. In our perfect world, get us the PE of 83 ($135). Brian