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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: Sharise Brown who wrote (3815)	9/15/1998 11:38:00 AM
From: llwk7051@aol.com	Read Replies (2) \| Respond to of 7342

NEW YORK, Sept 15 (Reuters) - Lehman Brothers analyst Steven Levy slashed his price target for Tellabs Inc. on Tuesday, according to Lehman, but he expects higher profits even after Tellabs forecast that third-quarter revenues would be flat-to-modestly higher than the second quarter's. Neither the analyst nor the firm was immediately able to comment. In a research note sent by Lehman, the firm said that Levy cut his price target to $75 a share from $100. Lehman said Levy raised his profit forecasts. He expects 1998 earnings of $1.90 a share, up a dime from his previous forecast of $1.80. For 1999, Levy expects earnings per share of $2.45, up $0.20 from his prior forecast of $2.25. The changes came after Tellabs told analysts on a Monday conference call that third quarter revenue would be flat to modestly higher than the second quarter due to "softness in bookings." It expects third-quarter earnings per share to be about $0.46. It later made a recording of the call available to the media and investors. Tellabs shares were very volatile on Monday. The company rose sharply after it canceled a proposed $4.7 billion merger pact but fell about 16 percent at one point in afternoon trading after the conference call. "This is getting silly," said Levy in the note. "We believe that investors have confused Tellabs for a car wreck when we are not even sure if the bumper is dented," he wrote. "Tellabs remains our number one investment recommendation." The stock remains rated buy.