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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: Jay Mowery who wrote (946)	8/25/2000 2:20:32 PM
From: max power	Read Replies (1) \| Respond to of 1944

Today's Comments from AG Edwards By: AG Edwards 8/25/00 UPGRADE --> ADC Telecom (ADCT) -- Upgraded to Buy from Accumulate. Price objective is $51. Analyst is David Heger, whose comments follow: "Following the release of third quarter earnings last week, we changed our rating on ADC due to valuation concerns. Although we increased our revenue and net income projections through fiscal 2001, our 2001 EPS estimate remained at $0.74 due to the additional shares issued for recent acquisitions. As a result, our valuation remained at $51, which represents a multiple of 69X our 2001 estimate. In light of the strong earnings results reported by the company, shares moved much closer to our $51 valuation. Since that time, however, ADC shares have declined by over 20%, with no change in fundamental outlook. If anything, we suspect that the company may report additional upside to our current estimates. We will also be watching closely for a pending management decision regarding one million square feet of additional manufacturing capacity. We feel that if the company moves forward with adding this capacity, it sends a strong signal that management expects even higher demand than reflected in current guidance. Even without this decision, we feel that the share price now offers enough potential appreciation to our current price objective to return to more actively purchasing shares. As a result, we are upgrading to a buy/aggressive rating from an accumulate/aggressive rating."