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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: Guy Gordon who wrote (1009)	3/20/2000 4:02:00 PM
From: pat mudge	Respond to of 3951

Another upgrade, this from Warburg Dillon Read. The report concludes: . . . As a result of these strong fumdamentals for both SDL and the optical industry as a whole (Corning(GLW-$189.38-Buy)preannounced positive results on March 16) we have raised our estimates for SDL. Our revenue forecast goes to $361million from $311 million in 2000 and to $540 million from $430 million in 2001. Our EPS estimates rise to $0.82 and $1.18 from $0.74 and $0.97 for 2000 and 2001. Finally, we believe that our estimates are still conservative and that there is room for upside surprise on both the top line and bottom line from both higher than anticipated revenues and operating leverage going forward. We are therefore raising our price target to $265. This equates to 225x our 2001 EPS of $1.18. As a comparison, JDSU (JDSU-$130.06-Buy) trades at 200x our CY01 EPS estimate. Given that SDL is growing rapidly off a smaller base. Also, we believe that there is potential that SDL is an acquisition candidate. We believe that the multiple is justified. . . . >>>>