Oppenheimer reiterates its Strong Buy recommendation for Metalink

But the bank cuts its target price from $71 to $44 a share
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Following a positive report by communication chip manufacturer

Metalink

(Nasdaq:MTLK) for the fourth quarter of 2000, American investment house CIBC Oppenheimer reiterated its Strong Buy recommendation for dual-listed Metalink.

Despite its positive report, Metalink has suffered from the Nasdaq slump. Oppenheimer analysts are reducing their price target for the stock from $71 to $44, a price 250% above its $15.8 Friday close. Metalink shares have gained 90% this year, but are still a long way from their 52-week high of $73.

Metalink reported net earnings per share of 4 cents for the fourth quarter, a little higher than expectations. Oppenheimer for one had expected 3 cents a share. Revenue grew by 18% in Q4 compared to Q3 to $7.4 million compared to analyst's expectations of $6.8 million.

Oppenheimer analysts say that that the rapid growth in G.SHDSL modems, which use a symmetrical transfer mode, sector and the DSL, will continue. Metalink is expected to position itself as a leading provider of chips for this market.

The analysts at Oppenheimer raised first-quarter earnings expectations from 3 cents to 4 cents a share. They are also expecting fourth-quarter revenue to reach $7.5 million, a sliver above Q4 2000 income of $7.4 million.