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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: A. Edwards who wrote (7990)	5/24/1999 12:08:00 PM
From: A. Edwards	Respond to of 21876

May 24,1999 Merrill Lynch reiterated 2-1 rating on LU: Merrill's research highlights: We are reiterating our Accumulate intermediate term and Buy Long term opinions on Lucent for the following reasons: 1. The company's proposed acquisition of Ascend has cleared all regulatory hurdles and now awaits a shareholder vote on June 24, 1999. We assume that the acquisition will be approved by Ascend shareholders, and are increasing our fiscal 2000 EPS estimate from $1.50 to $1.55 to reflect this event. 2. The introduction of several new products has allowed Lucent to gain share in several rapidly growing market segments (e.g., wireless and optical). Additionally, Lucent is poised to capture share in international markets. We expect Lucent's international business to grow by more than 20% per year over the next several years. 3. We believe the combination of a successful acquisition of Ascend, new product launches and more aggressive international sales effort has improved the earnings outlook over the next 4-6 quarters. We believe that the business outlook is very positive.