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Credit Suisse Hikes Oracle Estimates But Is Cautious on IBM

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Credit Suisse First Boston

increased its full-year 2001 and 2002 estimates on software maker


(ORCL) - Get Oracle Corporation Report

, saying the company's fiscal 2001 "should even convert the skeptics."

The positive spin comes one day after Oracle

posted second-quarter earnings that Credit Suisse called "picture perfect."

In its technology group research update, Credit Suisse said it was raising its full-year 2001 earnings per share estimate to 51 cents from 48 cents, and revenue estimate to $11.9 billion from $11.8 billion. As for 2002, the firm now expects earnings of 63 cents a share, up from 57 cents a share, on revenue of $14.1 billion, compared with a previous estimate of $13.5 billion.

Credit Suisse also reiterated its strong buy rating on the Redwood City, Calif., company, and a 12-month price target of $48, which it said "suggests 75% upside from current levels." Oracle was recently trading at $29.06, up 5.7% or $1.56, on the



But playing the skeptic on bellwether


(IBM) - Get International Business Machines Corporation Report

, Credit Suisse said the company "cannot avoid deteriorating industry fundamentals this quarter, and said it believes "there is a downside to the Street's $26.75 billion revenue expectation" for IBM's fourth quarter. Credit Suisse foresees fourth-quarter revenue of $25.75 billion, with a price target of $85. IBM was recently trading at $87.38, down 5.4%, or $5.06, on the

New York Stock Exchange

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The research firm also urged caution on Internet incubator



, which beat estimates yesterday with a narrower-than-expected first-quarter loss. Credit Suisse said "weak online advertising sales" at the company's


unit and the "continued transition of

Alta Vista

" were responsible for "revenue growth of only 3%."

Credit Suisse, which has a hold rating on the company, also said that the "strong possibility of additional streamlining and restructuring" at CMGI could "cloud visibility in the near term."

CMGI was lately spiraling south, losing 75 cents, or 8.2%, to $8.31 in Nasdaq trading.

In addition, Credit Suisse reiterated its strong buy rating on

Veritas Software

(VRTS) - Get Virtus Investment Partners, Inc. Report

, which it called "one of the most attractive large-cap, high-growth" software companies with "improving fundamentals, formidable competitive advantage, leverageable financial model and significant visibility."

Credit Suisse said it expects Veritas to report 2000 earnings of 58 cents a share, compared with 35 cents a share in 1999. For 2001, it expects earnings of 86 cents a share. Credit Suisse said it believes the company's penetration of other hardware platforms, including

Sun Microsystems'

(SUNW) - Get Sunworks, Inc. Report

servers, "insulates the company from potentially slower growth at any one vendor."

Shares of Veritas recently gained $3.25, or 3.9%, to $97 in trading on the Nasdaq.