Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: helkel who wrote (35271)	12/23/1999 2:26:00 AM
From: Larry J.	Respond to of 36349

Raymond James "Initiation of Coverage" (By: Todd Koffman) 12/22/99 RATING: BUY (1) Initiating coverage of PairGain with a BUY (1) rating and a price target of $20. PairGain is in the midst of transitioning itself from a "plug company" to a "systems company" as it moves to deploy its Avidia integrated access platform. Our industry checks suggest Avidia is a top-flight product starting to gain customer support. * In the repeaterless T1 segment, we believe the transition to HDSL2 presents an opportunity for PAIR to win back share at some traditional RBOC accounts. * While small subscriber sales have moderated, we expect new products to stimulate demand in H1:00. The small subscriber product continues to address copper loop shortages and should post healthy growth in conjunction with line demand. *The current valuation gives little credit to the potential of Avidia and discounts any hope of winning back business in the traditional T1 market. The combination of these two factors, if successful should lead to improved revenue growth, expanded margins and a strong earnings recovery. We initiate coverage with a BUY (1) rating for speculative accounts. lj