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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Bernard Levy who wrote (23588)	5/18/1998 10:19:00 PM
From: Epics	Read Replies (1) \| Respond to of 36349

unnamed analyst released this today... --SUMMARY:--PairGain--Telecommunications Equipment We are reiterating our 2H rating on PAIR shares and upper $20s end-of year price target. We believe the recent price pressure is unwarranted and downside from current levels is limited. We continue to believe that 2H 1998 will witness accelerating bottom line performance (up 24% in Q3 and 39% in Q4) as the small subscriber systems hit their stride. HiGain price pressures appear to be moderating, and while this product line's revenues may be slightly behind plan this quarter, strength in small subscriber systems should offset this weakness. At the current valuation PAIR shares are selling at a significant discount to the telecom equipment group average (23x forecasted 1998 EPS versus 33x for the group). While we believe a modest discount is justifiable,this appears to be overdone.