Nessuah Zannex analyst Haim Israel recommends viewing

Elron Electronic Industries

(Nasdaq:ELRNF) from the long-term perspective. He also says investors should look closely at the potential of its holdings.

Israel reiterated a Buy recommendation for Elron, but lowered its price target to NIS 120, still 84% above its price on the market in Tel Aviv.

He lowered the price to factor in the deteriorating market conditions of the technology and telecommunications companies in Elron's portfolio.

Israel says that Elron shares are traded at a 40% discount against its net assets value.

He estimates that Elron Software is worth $103 million and that Elron TeleSoft is worth $50 million. Israel expects Elron Software to achieve operational balance by the end of 2002, and that it will burn up between $5 million to $10 million before achieving a positive cash flow.