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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?

To: diana g who wrote (2705)	10/26/1998 6:58:00 PM
From: Vijay Raghavan	Read Replies (2) \| Respond to of 3115

By Brenon Daly, CBS MarketWatch Last Update: 2:09 PM ET Oct 26, 1998 NewsWatch CUPERTINO, Calif. (CBS.MW) -- Rational Software surged to a one-year high as the company met with money managers in Boston on Monday, an analyst said. The company (RATL) is following up a "strong" recent third-quarter report with a roadshow, Hambrecht & Quist analyst Sheila Ennis said. "Getting the word out there certainly doesn't hurt," Ennis said. The tour continues "for the better part of the week." Further details weren't immediately available from Rational. Shares added 1 1/4 to 20 1/16, a new 52-week high. Trading on Monday was seven times heavier than average. Earlier this month, Rational shares traded as low as 11. A big part of the climb came two weeks ago, after the company reported better-than-expected third-quarter results. Rational, which makes software development and testing tools, earned 14 cents a share on sales of $94.6 million. That compares with analysts' projected earnings of 12 cents a share on sales of $90 million. Additionally, Rational "guided" analysts two weeks ago to raise their estimates for the coming year. Wendell Laidley at CS First Boston bumped up his 1999 projection to 59 cents a share in earnings on revenue of $395 million. That compares to his earlier expectation of 53 cents s share on sales of $386 million. At the same time, Rational said it plans to buy back up to 6 million of its shares.