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

To: Mohan Marette who wrote (103861)	2/22/1999 3:59:00 PM
From: paru	Read Replies (1) \| Respond to of 176387

Gateway Moo-ves Higher on Analyst's Upgrade By David Shabelman Staff Reporter 2/22/99 11:00 AM ET SAN FRANCISCO -- He was one of the analysts voicing caution regarding Dell's (DELL:Nasdaq) fourth-quarter earnings. Now, Piper Jaffray's Ashok Kumar is saying 1999 could be the year of the cow in an upgrade of Gateway (GTW:NYSE). Kumar upgraded Gateway to strong buy from buy and raised its price target to between 95 and 100 from 56. He upped the first-quarter earnings estimate to 90 cents a share from 59 cents, compared with the First Call estimate of 60 cents. He also upped estimates for fiscal year 1999 to $3.87 from $2.82 vs. the $2.79 estimate from First Call. Gateway was up 6 1/8, or 8.4%, to 79 in early trading. In the report, Kumar said that the aggressive expansion of Gateway's Country Stores, which focus on consumers and small to medium-sized businesses, will help Gateway offset a seasonal slowdown normally seen in the first quarter. Kumar indicated that "higher customer acquisition costs and cannibalization of tele-sales will be a dark-cloud cover longer term." An announcement from Gateway late Friday that it would be using Advanced Micro Devices (AMD:NYSE) as its second supplier of chips, is helping that stock. AMD was up 1 1/2 at 19 1/8 in early trading.