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Technology Stocks : Gateway (GTW) -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Anderson who wrote (5263)	1/23/1998 9:13:00 PM
From: Peter Poland	Respond to of 8002

02:50 PM ET 01/23/98 RESEARCH ALERT-Gateway 2000 upgraded CHICAGO, Jan 23 (Reuters) - Nomura Securities analyst Daniel Ries said Friday he raised his rating on Gateway 2000 Inc after the company significantly beat fourth quarter earnings expectations. In a research note received here, Ries said Gateway's operating efficiency returned sooner than expected. The company reported fully diluted earnings of $0.59 a share versus $0.56, after losing money in the third quarter. According to First Call, the consensus estimate was for lower earnings per share of $0.45. Ries raised his estimates for 1998 by $0.14 a share and for 1999 by $0.01. Ries cited a substantial decrease in inventories for the quarter after an earlier buildup because of poor forecasting. "With its inventory position in great shape, and most of the needed expense reduction already behind it, we believe Gateway can once again convert this revenue growth into improved earnings," Ries said. Ries set a 12-month price target of $40 to $45 a share. Shares of Gateway traded 3-8/16 higher at 37-3/16. ((Susan Nadeau, Chicago newsroom, 312 408 8787, fax 312 922 6657, chicago.equities.newsroom@reuters.com))