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Technology Stocks : Gateway (GTW) -- Ignore unavailable to you. Want to Upgrade?

To: D. Swiss who wrote (7273)	7/23/1999 12:42:00 PM
From: Souze	Read Replies (1) \| Respond to of 8002

GTW upgraded by ING, SSB, DB, DLJ, PW and ABN AMRO. Bolding is mine. NEW YORK, July 23 (Reuters) - Shares of Gateway Inc. (NYSE:GTW), the world's No. 5 computer maker, climbed 14 percent on Friday, boosted by strong second-quarter profits and a chorus of positive comments from Wall Street analysts. Gateway shares rose as high as $72 in morning trade on the New York Stock Exchange, up $9 from Thursday's close. They later slipped back to $70.50. Volume was 3.6 million shares, more than double the daily average. On Thursday, the San Diego, Calif.-based company reported second-quarter profits of $89.2 million, or 56 cents per diluted share, up from $60.7 million, or 38 cents a share, a year earlier, boosted by its expansion beyond its core personal computer business. The earnings surpassed the consensus Wall Street estimate of 55 cents a share. Analysts cheered the results and scurried to upgrade the stock. ING Baring analyst Robert Cihra, who lifted his rating on Gateway to "strong buy" from "hold," said the company's solid performance answered lingering questions about its ability to grow its sales mix, reduce expenses and deal with slumping computer prices. "Although strength in the hot U.S. consumer market continued to boost overall performance, it was signals underlying Gateway's business mix that impressed us," Cihra said in research brief. Gateway results were boosted by growth in non-computer businesses such as its Internet service provider, Gateway.net, software, and financing, the company said. Salomon Smith Barney analyst Richard Gardner upgraded the stock to "buy" from "neutral" and set a 12-month price target of $85 on the shares. Deutsche Bank Alex Brown raised its opinion on the shares to "strong buy" from "buy." Other positive comments came from Donaldson, Lufkin & Jenrette, which went to "buy" from "market perform;" PaineWebber, which went to "attractive" from "neutral;" and ABN AMRO, which went to "outperform" from "hold." Copyright 1999, Reuters News Service