price target and earnings estimates were cut this morning by
Morgan Stanley Dean Witter
, which said it expected declining revenue for the optical fiber company.
Morgan Stanley cut its price target on the company to $50 from $95 and lowered its earnings estimate for the fiscal third quarter to 16 cents a share from 17 cents. The current 18-broker consensus is 17 cents for the quarter. "For the next quarter, we expect a 9% sequential decline in revenue to $925 million, compared to our prior estimate of sequentially flat revenue," the note said. "A broad recovery in visibility looks unlikely."
Dan Niles lowered expected revenue growth on specialty semiconductor names
this morning, citing sluggish booking patterns and the expectation that contract manufacturers will continue to draw down inventories.
Xilinx's revenue growth was lowered to 15% from 20% for 2001, while Altera's was dropped to 4% from 10%. Earnings estimates were also cut for both companies. Earnings per share estimates for Xilinx were dropped to $1.25 from $1.30 and dropped to 89 cents from 94 cents for Altera. Lehman, which has not underwritten for those stocks in the last three years but makes a market in both names, rates both companies "market perform."
The analysts are soft-pedaling on
this morning after the servermaker
warned it would fall short of earnings and revenue estimates for the fiscal third quarter.
, which has the stock on its recommended list,
Credit Suisse First Boston
, which rates it a buy, and Lehman Brothers, which rates it strong buy, have done the usual, cutting estimates to reflect company guidance. They all maintained their existing ratings.
, which downgraded the company to neutral from accumulate two days
ago, did the same, writing in a comment today that "the magnitude of the reductions caught us by surprise."
: UP to strong buy from buy at Credit Suisse First Boston.
: UP to strong buy from buy at CSFB.
: UP to market outperformer from market performer at Goldman Sachs, which lowered 2001 earnings per share estimates to 95 cents from $1.60 and raised 2002 estimates to $3.00 from $2.50. Lehman Brothers cut 2001 estimates to $1.20 from $2.15.
: DOWN to buy from strong buy at Credit Suisse First Boston.
: price target DOWN to $135 from $140 at
Salomon Smith Barney
, citing slowing spending on information technology.
: NEW intermediate-term buy, long-term accumulate at Merrill Lynch.