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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Brian Sullivan who wrote (36089)	3/13/2001 4:21:07 PM
From: PJ Strifas	Respond to of 42771

RESEARCH ALERT-Lehman downgrades Cambridge Tech Tuesday March 13, 12:00 PM EST NEW YORK, March 13 (Reuters) - Lehman Brothers said on Tuesday it cut its rating on computer consultancy Cambridge Technology (CATP) to market perform from buy due to concerns over its merger with business software maker Novell Inc. (NOVL) in a stock swap worth about $255 million. "We are cautious about the merger for several reasons," analyst K. Keirstead said in research notes. "Successful mergers in the IT services industry are rare; there is no good precedent for a merger between a software company and an IT services firm; the overlap between the two firms does not appear to be significant; and Novell's guidance for 25 percent earnings per share accretion from the deal looks aggressive." Lehman's 12-month price target on Cambridge is $5 a share. Shares of Cambridge closed on Monday at $3-3/32, well off their 52-week high of $18-1/8.