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Technology Stocks : SUN MICROSYSTEMS -- Ignore unavailable to you. Want to Upgrade?

To: Nancy Stall who wrote (11)	1/5/1998 9:12:00 AM
From: jad	Read Replies (1) \| Respond to of 23

Briefing: SUN MICROSYSTEMS INC. (SUNW) 41 1/2 CLOSED. Shares of network workstations and software concern are expected to start on the plus side this morning following a very positive article in this week's Barron's. According to several Wall Street analysts interviewed for the article, they are all very optimistic that the stock is on the rebound and shares of Sun Microsystems could rise by as much as 50% in 1998 to a price of $60 a share. The article credits the recent agreement the company struck with Intel (INTC 72 5/8) to make SUNW's Solaris computer operating system run on Intel's new 64-bit microprocessor Merced chip, which is due to be introduced in 1999, as a major factor. Also, the fact that Intel is looking for new opportunities beyond the desktop chip market and seems ready to go after the higher-margin network market, putting it at slight odds with Sun's main rival in the network market Microsoft (MSFT 131 1/8), is also viewed as a positive. In addition, the fact that NCR has embraced Solaris and has abandoned its own UNIX operating system and there is talk that other network operating systems makers like Data General (DGN 17 15/16), Sequent Computer Systems (SQNT 22 1/16) and Unisys (UIS 13 11/16) are also considering embracing Solaris will be a boost to bringing a standard to UNIX and help SUNW establish itself as the predominant player in this area. According to Goldman Sachs' Laura Conigliaro, she expects SUNW stock to rise by 50% in 1998 to $60 a share as 1998 EPS is expected to increase by 19% and 20% in 1999. JP Morgan's Daniel Kunstler also is bullish on the stock, expecting shares of SUNW to rise to $55 a share by the end of 1998, while Christine Chien of Zurich Kemper Investments expects share of SUNW to rise by 40% to 50% over the next year. Hence, the positive write-up by Barrons' will likely help the stock this morning, although given the negative tone the tech sector will encounter due to the earnings warnings being released by various companies could keep the stock in check.