has initiated coverage of broadband wireless access solutions company
(Nasdaq:BRZE) with a Buy rating.
The bank says BreezeCOM's market potential will be realized later than forecast because of the slump in the telecom equipment market. The bank says BreezeCOM has enjoyed substantial growth in revenues, but predicts that growth will slow. Oscar Gruss foresees revenue growth of 124% in 2000, 33% in 2001 and 31% in 2002.
The bank set a price objective of $15.5. On Friday, January 12, BreezeCOM shares closed at $12. The bank therefore calculates that BreezeCOM is traded at a discount of 20%.
In December 2000
predicted that BreezeCOM revenues will jump by 50% to $150 million in 2001. Oscar Gruss's forecast apparently factors in negative developments in the global telecoms market in the last month and a half.
Oscar Gruss expects BreezeCOM's revenues to climb by $33 million in 2001, 17% less than the forecast SSB made in early December.
set BreezeCOM a price target of $21, 35% above the target set by Oscar Gruss. When Goldman Sachs released its report, BreezeCOM shares traded at $14, $2 higher than their price today.
Oscar Gruss is impressed by BreezeCOM's performance and by its strong global marketing presence, backed by 200 distributors and OEMs with
(NYSE:ALA), two of the world's leading broadband wireless equipment manufacturers.
The bank further says that BreezeCOM has $188 million in its coffers toshelter on a rainy day, and help it to attain strategic expansion.
Analyst Ehud Eisenstein says that what he loves in BreezeCOM is its extraordinary financial results. He says that the company switched to profit in the second quarter of 2000, which means that it no longer has to fund losses.
The bank expects that BreezeCOM will post $100 million revenues in 2000, and that its gross profit margin a remarkably high 45%.