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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: JC Jaros who wrote (36853)	10/19/2000 8:49:06 AM
From: Lynn	Read Replies (1) \| Respond to of 64865

Dear JCJ: The pool is now officially closed. You are the price target winner [but only because no one else had time to name a price before the pool closed]: >If $135 is ml's current (pre earnings) target, I'd say that goes to $165 (first in the pool) Now for ML's official new 12 month target [drum roll]... $145!!! Sun Microsystems: When Perfection Just Won’t Do… By Thomas Kraemer, First Vice President, and Larry Tankel, Assistant Vice President Reason for Report: Analysis of Sales/Earnings 12 Month Price Objective: $145 Estimates (Jun) 2000A 2001E 2002E EPS: $1.02 $1.42 $1.78 P/E: 108.2x 77.7x 62.0x EPS Change (YoY): 39.2% 25.0% Consensus EPS: $1.33 $1.66 (First Call: 17-Oct-2000) Q2 EPS (Dec): $0.21 $0.32 Cash Flow/Share: $1.44 $1.76 NA Price/Cash Flow: 77.3x 63.3x NM [snip] Investment Highlights: Sun reported EPS of $0.30, ahead of our estimate of $0.28 and consensus of $0.26. Revenue growth of 60% for the quarter blew away our estimate of 42%. We are increasing our 2Q01 revenue estimate to $5.3B from $4.7B and raising our EPS estimate for the quarter by $0.01 to $0.32. For the full 2001 fiscal year, we have raised our revenue estimate to $22.1B from $20.7B and our EPS estimate to $1.42 from $1.36. Fundamental Highlights: Sun was a victim of its own success. Simply put, we believe that Sun’s gross margin dipped to pay for the heroic growth and share gain. Solaris, Java, and other IP drove Sun this far and should make for continued strong revenue growth. [body snipped] Regards, Lynn