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To: jopawa who wrote (2201)	1/4/1999 1:47:00 PM
From: jopawa	Respond to of 2818

Hardware stocks start year with a bang By Tiare Rath, CBS MarketWatch Last Update: 11:46 AM ET Jan 4, 1999 Also: Silicon Stocks NEW YORK (CBS.MW) -- Computer hardware stocks started 1999 with a bang, rallying as an analyst bumped up price targets on a few large companies and anticipation swirled around the MacWorld conference. Breaking News Wall Street toasts new year Continent up on euro euphoria Networking shares pace tech gains NAPM shows faltering factory sector Ride the tiger: On the Web More top stories... CBS MarketWatch Columns Updated: 1/4/99 12:42:44 PM ET The Goldman Sachs Computer Hardware Index rose 2.2 percent Monday, outpacing the Nasdaq, which gained 18 percent. Merrill Lynch analyst Steven Milunovich raised his 12-month price targets on Dell (DELL), International Business Machines (IBM) and Sun Microsystems (SUNW). He expects Dell to trade at $85 a share in 12 months, IBM to trade at $226 a share and Sun to trade at $103 a share. The analyst said Internet computing, which caters to clients through Web browsers, will help players like Dell in coming years. While Cisco (CSCO) builds the infrastructure for communication to run through, "once the data arrives it has to go somewhere," he wrote in a research note. "(That) is where servers and storage come in." In addition, Milunovich said many of the companies' price-to-earnings ratios, or how expensive their stocks are vs. how much money they make each year, are "not unreasonable relative to the market." Dell's stock gained 1 1/2 to 74 11/16; IBM rose 1 1/4 to 185 5/8; and Sun advanced 4 3/8 to 90. Computer maker Gateway 2000's (GTW) stock rose 2 9/16 to 53 3/4. Milunovich also raised his price targets on Unisys (UIS), Xerox (XRX) and EMC (EMC) among others. Compaq Computer (CPQ) was also a popular investment Monday. Shares gained 1 3/8 to 43 3/8 as the computer maker said its commercial Deskpro EN and EP Series computers are now powered by Intel's (INTC) 400 MHz Celeron processor. Intel's shares gained 4 5/16 to 122 7/8. See press releases. In addition, Apple's (AAPL) shares rallied 3/4 to 41 11/16 in anticipation of the MacWorld conference, which will feature a speech Tuesday from interim Chief Executive and co-founder Steve Jobs. See related story. Tiare Rath is a reporter for CBS MarketWatch.