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To: Johnny Canuck who wrote (42806)	11/21/2005 11:24:25 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69962

Avaya Seen With Momentum To Build Through 2006 Ed Lin, 11.21.05, 9:39 AM ET Banc of America Securities analyst Tim Long said that recent checks suggest strong December sales trends for Avaya (nyse: AV - news - people ). Long said in a research report: "We recently spoke to a number of Avaya's U.S.-based partners, and our view is that domestic product sales are tracking up sequentially in December." He said that the U.S. represents about 60% of Avaya's sales, and expects "a positive tone from the Dec. 1 analyst day, particularly since consensus calls for a 2% quarter-over-quarter sales decline." The analyst said IP telephony is gaining momentum and "it appears clear that the U.S. enterprise has begun to embrace the value proposition of voice over IP. We expect this momentum to build through 2006, which should drive healthy product sales for Avaya." Past disruptions appear behind the company, Long said. "The majority of the channel partners we spoke to were pleased regarding their current relationship with the company, leading us to believe most of the channel-related disruptions earlier in the year are now behind them," he said. "Avaya's ability to migrate customers existing systems from TDM to VoIP was consistently cited as a key competitive advantage," Long said. Industry checks showed that "Avaya's strong suite of applications was also cited as best of breed." The analyst rates Avaya at "buy" with a price target of $15. It is one of his two top picks in the data networking and wireline equipment, with Nokia (nyse: NOK - news - people ), also rated at "buy" with a $20 price target. His two least favorites are Ciena (nasdaq: CIEN - news - people ) and Lucent Technologies (nyse: LU - news - people ), both rated at "neutral" with respective price targets of $2.25 and $3.00.