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To: Susan G who wrote (2269)	1/31/2001 12:34:26 PM
From: bobby is sleepless in seattle	Read Replies (1) \| Respond to of 5732

PeopleSoft falls despite strong quarter By Tiffany Kary ZDII PeopleSoft (Nasdaq: PSFT) shed 10 percent Wednesday, despite praise from some analysts following the company's report of better-than-expected fourth quarter. A bearish report from Morgan Stanley said the stock was likely to stay stagnant in the near-term. Sound off here!! Post your comment Latest News on PSFT MIDDAY MARKETS: Techs eager for Fed news... PeopleSoft falls despite strong quarter... RESEARCH ALERT - PeopleSoft cut to neutral... PSFT: News Profile Chart Estimates Shares in the maker of enterprise software were off $5.03 to $43.91 on Wednesday morning. The stock has risen 31 percent since the year began. PeopleSoft announced financial results after market close Tuesday, beating estimates on the top and bottom line. The company stuck to its earlier revenue and earnings forecasts for 2001, perhaps disappointing observers who were hoping the company would raise expectations. First Call consensus currently predicts PeopleSoft will earn 58 cents per share on revenue of $2.06 billion. However, Morgan Stanley analyst Charles E. Phillips downgraded the stock from "outperform" to "neutral". Phillips said the downgrade was based on share price, and an expectation that revenue growth this year is unlikely to match the company's impressive pace of the last six months. The company's planned reduction in deferred revenue throughout the year reduces top line visibility, and "quite possibly, the multiple on the stock," Phillips said. The analyst praised management for doing an excellent job in reviving the company, but said that in this transition phase, comparisons are tougher, income from its Momentum subsidiary is declining, and margins will likely improve slower than expected. Other analysts were extremely optimistic on the stock. Lehman Brothers analyst Neil Herman reiterated a "strong buy" rating on the stock, and upped his target price to $60 from $55 a share. "We believe potential investor concerns over the modest upward revision to EPS guidance are unwarranted as we believe this cautious up-tick is a reflection of macro-economic concerns," the analyst cautioned. Herman praised the company's strong demand. He left his already well-above-consensus earnings estimates for 2001 unchanged, but said he believes PeopleSoft could top his published expectations for the next two years. Goldman Sachs analyst Steven Kahl maintained a "market outperformer" rating and raised 2001 estimates slightly. His only caution was that better visibility was needed on the higher growth segments to sustain longer term growth rates. • PeopleSoft cruises past 4Q estimates • PSFT chart • PSFT Profile • PSFT estimates

To: Susan G who wrote (2269)	1/31/2001 12:35:38 PM
From: Connor26	Respond to of 5732

Mixed Reaction to PeopleSoft Report Includes Morgan Stanley Downgrade 1/31/01 12:05 PM ET It's hard to please people, as PeopleSoft (PSFT:Nasdaq - news) discovered Wednesday morning. The business-management software firm was downgraded to neutral from outperform by Morgan Stanley Dean Witter, despite posting positive fourth-quarter results and 2001 guidance Tuesday. Reaction from other analysts was mixed, but investors pushed the company's shares down $6.13, or 12.53%, to $42.75 in morning trading on the Nasdaq. Merrill Lynch analyst Craig Wood also said the company's guidance for 2001 was "positive" but "not significantly ahead of what people were expecting," according to Reuters. But UBS Warburg called the company's fourth quarter "impressive" and maintained its hold rating. Still, it warned that 2001 would be "more challenging" amid increasing competition. US Bancorp also maintained its buy rating on PeopleSoft, which surpassed the brokerage's revenue and earnings expectations for the fourth quarter, while Lehman Brothers reiterated its strong buy rating and raised its price target to $60 from $55. J.P Morgan analyst James Pickrel, who kept his buy rating on the company, raised his 2001 revenue estimates to $2.1 billion from $1.9 billion, and earnings-per-share estimates to 62 cents from 60 cents, saying he remains "enthusiastic" about his outlook for Peoplesoft. Pickrel also said Wednesday he believes the company "is ready to compete on equal footing" with rivals like Oracle (ORCL:Nasdaq - news) and SAP (SAP:NYSE ADR - news).