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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Robert G. Ghazey who wrote (7673)	3/11/1998 3:15:00 PM
From: Greg h2o	Respond to of 42804

New Gruntal Report 3/10/98...Here's the summary. If anyone just has to have the whole 32 page report, let me know. regards, greg Initiating Strong Buy Rating on Shares of MRV Communications, Inc. A Rapidly Growing Networking Company Summary: We initiated coverage of MRV Communications ("MRV" or "the company") with a Strong Buy investment rating on March 3rd at $22.25. We believe that MRV is well positioned to participate in the multi-billion dollar market for high-speed data networking equipment. The company has grown rapidly and ended 1997 with revenues of $165.5 million and net income of $22.6 million or $0.88 per share (see Exhibit 12). We are projecting EPS of $1.23 for 1998 on revenues of $256.9 million and EPS of $1.72 for 1999 on revenues of $370.1 million. Our 12-month price target is $43 (an appreciation potential of 71.8%), based on a P/E multiple of 25 times our 1999 EPS estimate of $1.72. The company has an excellent track record of delivering solid growth in revenues and operating earnings. Trading currently at 20.3 times our 1998 earnings estimate of $1.23, a substantial discount to the long-term earnings growth of 40%, we view this stock as inexpensive relative to its peers and would recommend purchase for aggressive growth-oriented investors seeking substantial appreciation in capital.