, represented in Israel by
, rates _b
(Nasdaq:BRZE) an Aggressive Buy.
DRW's price target of $15 is 100% above BreezeCOM's market price.
Analyst Jim Moeller notes that BreezeCOM met amended forecasts for the first quarter with sales of $23.9 million, compared with $15.6 million in the comparable quarter of 2000.
Moeller says that BreezeCOM's inventory days rose to 337 days compared with 192 days in the parallel, indicating that the company is building up stock because of the slowdown in the U.S. market. Even though he foresees the tech crisis impacting on BreezeCOM in the second quarter, he lifted his forecast for the year 2000 from 8 cents earnings per share to 10 cents.
One of the problems BreezeCOM faces, says Moeller, is its shift to operating losses in the first quarter. BreezeCOM reported a $2.45 million operating loss, compared with an operating gain of $1.3 million in the fourth quarter of 2000.
That taken with the company's buildup of inventory raises BreezeCOM's risk level, Moeller judges. But he does not think the inventory buildup requires amendment in the books.
He sees three key elements lifting BreezeCOM results in the future: the onset of sales in Japan, recruiting Siemens as an OEM partner, and the launch of a new product BreezeCOM OFDM (orthogonal frequency division multiplexing) broadband wireless access solutions.