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Technology Stocks : PRI Automation (PRIA) -- Ignore unavailable to you. Want to Upgrade?

To: cluka who wrote (805)	9/14/1999 10:15:00 PM
From: orkrious	Read Replies (2) \| Respond to of 1214

cluka, thanks for posting the SSB notes. Much appreciated. It is amazing to see how they go through convoluted exercises to show how they arrive at their price targets. Our new price target is based on our expectations for EPS to increase 25-30% from our current CY00 estimate of $2.67 to $3.30-$3.40 in CY01. By averaging the CY00 and CY01 estimates, we arrive at estimate slightly above $3.00 and applying a 28x multiple results in the $85 price target The truth of the matter is that their EPS estimates are likely too low going out to 2001 and 2002 due to the huge 300mm buildout that will happen. They just want it to sound complicated, and there is too much risk in just raising their estimates. Jay