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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: E. Graphs who wrote (19332)	7/19/1999 3:27:00 PM
From: Paul Lee	Respond to of 25814

LSI Logic Up 6%; Analyst Raises Price Target To $65 NEW YORK -- Shares of LSI Logic Corp. (LSI) rose 5.7% Monday after BancBoston Robertson Stephens & Co. analyst Daniel T. Niles raised his year-end price target to $65 from $50. In a research note, Niles said his $65 price target could "look conservative by year-end." While maintaining his strong buy rating, Niles attributed his raised price target to strong demand for the company's specialty semiconductor chips and increased production at the company's Gresham, Ore., facility. The custom semiconductor company is enjoying "orders stretching into the first quarter with lead times still stretching," said Niles. "Demand is broad-based, especially in networking and telecom with storage." Niles sees the second half of 1999 driven by DVD, DCAM and set-top box products. Additionally, LSI's Gresham semiconductor chip manufacturing facility is a "faster-than-expected revenue ramp." In the third quarter, Niles expects the plant to "provide a huge upside" to revenue, margins, and earnings per share. As a result, Niles "believes actual revenues could be at least $50 million higher than its 1999 forecast and $250 million higher than 2000 forecast." He estimated the Milpitas, Calif., company will generate $2.02 billion in revenue for 1999 and $2.36 billion for 2000. As reported May 9, LSI Chief Executive Wilf Corrigan said the company would hit $2 billion in revenue in 1999, up from $1.49 billion in 1998. Niles isn't the only analyst looking at LSI. Gerard Klauer Mattison's John Geraghty said when analysts raise price targets on companies, investors begin to look at fundamentals. In LSI's case, the "fundamentals are quite good." Sudeep Balain, an analyst at SoundView Technology Group, also likes LSI, which is on the firm's focus list. He said the company is "really seeing strong backlog and bookings" as a result of the fact that LSI's products are "playing into the Internet infrastructure buildout." Additionally, investors await the company's earnings which are scheduled to be reported Wednesday. A LSI representative declined to comment, citing a quiet period in advance of the company's earnings announcement. Shares of LSI Logic were recently trading at 53 1/16, up 2 15/16, or 5.9%, on composite volume of 2.6 million shares, compared with average daily volume of 1.7 million shares. -Beth M. Mantz; 201-938-5393