Robertson Stephens Daily Growth Stock Update

        On CLS, PLXS, SCI, JBL, LIZ, ACF, APW, BHE, CKFR, SANM     SAN FRANCISCO, Nov. 13 /PRNewswire/ -- The following is being issued by  Robertson Stephens, a member of the National Association of Securities  Dealers, CRD number 41271:           Rating Changes        Celestica Inc.  (NYSE: CLS) ($54.75)      Strong Buy    J. Keith Dunne, Electronic Manufacturing Products and Services  "We are raising our rating to Strong Buy from Buy to reflect the most  attractive valuations since the Fall 1999, despite continuously exceeding  expectations leading to a 35% increase in our fiscal 2001 Cash EPS estimates  in the past four months," said Dunne.  "At 29 times forward P/E estimate, CLS  is trading well below our expected 40% growth rate for 2001. Importantly, we  believe exposure to Cisco and Dell, two OEMs garnering increased scrutiny  these days, is only 6-8% each and business remains robust at SUNW, in our  opinion. We expect internal sales growth to accelerate to 41% in fiscal 2000,  up significantly from 29% last year.  Currently, we estimate internal sales  gains of closer to 20-25% in fiscal 2001, though our estimates could prove to  be conservative depending upon the pace of new program wins, especially for  communications customers such as Lucent, and the success the company has in  integrating and ramping production at the recently acquired IBM sites.  Contrary to recent articles in the press, we do not believe Celestica was a  serious contender for acquiring NatSteel, though we believe management is  interested in expanding its presence in Asia."           Plexus Corp.  (Nasdaq: PLXS) ($49.38)      Strong Buy    J. Keith Dunne, Electronic Manufacturing Products and Services  "We are raising our rating to Strong Buy from Buy to reflect the most  attractive valuations since the Fall 1999 and acceleration in internal growth  from an estimated 32% in fiscal 2000 to an estimated 47% growth in fiscal  2001," said Dunne.  "In contrast, the company is trading at only 31 times our  calendar 2001 Cash EPS.  We believe Plexus has industry-leading engineering,  design and complex assembly capabilities, which is allowing the company to  generate among the highest margins and returns on invested capital in the  industry. We believe management is successfully integrating recent  acquisitions that have significantly expanded geographic reach, service  capabilities, and customer diversification.  We expect further transactions  may lead to increases in our sales and Cash EPS estimates. We believe  management has become much more aggressive in its efforts to expand into  higher-end communications and medical applications and has sprinkled its  customer mix with leading venture-backed companies that could follow  Arrowpoint's footsteps and become major customers over the next 4-6 quarters."           SCI Systems, Inc. (NYSE: SCI) ($36.44)      Strong Buy    J. Keith Dunne, Electronic Manufacturing Products and Services  "We are raising our rating to Strong Buy from Buy, though readers of our  October 13 report should realize this is largely a formality to reflect our  initial use of this rating for the EMPS industry," said Dunne.  "We continue  to believe the company is undergoing significant fundamental positive changes  backed by a much broader and deeper management team that we had the pleasure  of meeting with in early November. We continue to believe our fourth quarter  2001 sales of $3.3 billion is achievable assuming the recent Ericsson programs  ramp as scheduled and add about $500 million in incremental sales in the  fourth quarter of 2001.  We also expect the company to largely achieve our  December sales estimate of $2.5 billion and find it amusing that two months  ago, the Street believed a $10.5 billion sales year was unachievable, only to  start believing the target was too conservative a few weeks later, when the $2  billion agreement with Ericsson was announced. We believe SCI is likely to  begin assembling port adapters for Cisco with additional PCBA and full system  assembly programs likely to be announced over the next year. Given the 50-60%  growth that Cisco has discussed, we expect Cisco could become a top 10  customer in the next fiscal year. Currently, SCI is trading for 17 times our  calendar 2001 Cash EPS, nearly 40% below its peers despite having an end-  market mix that is less PC centric and more attractive than Solectron, post  the NatSteel acquisition."           Jabil Circuit Inc.  (NYSE: JBL) ($44.25)      Buy    J. Keith Dunne, Electronic Manufacturing Products and Services  "We are increasing our rating to Buy from Long-Term Attractive to reflect the  most attractive valuations since the Fall 1999, despite the fastest rate of  internal sales growth in the industry," said Dunne. "At 35.7 times our forward  P/E estimate, JBL is trading well below our expected 48% internal sales growth  rate for 2001. We believe the increase in raw inventory levels at Cisco could  be positive for Jabil by lowering the prospect that tight component  availability may restrict near-term growth.  Additionally, we are not  expecting significant growth in Dell following a significant ramp in notebook  computer production in fiscal 2000. We believe Jabil may have the strongest  relationship in the industry with Lucent, a major communications OEM we  believe is on the verge of a major outsourcing program.  Recently, the CEO of  Jabil joined me in a panel before top Lucent executives to discuss changing  business models and the need for speed.  We suspect Jabil is near the top of  the list for significant levels of new business opportunities with Lucent. We  believe major plant expansions are progressing on plan, though startup expense  are likely to restrict EPS growth by up to a few cents per quarter over the  next several quarters, especially if the company wins significant new  business. We expect the company to continue actively seeking acquisition  partners, though none are in our forecast given management's rigorous  criteria."           Estimate Changes        Liz Claiborne, Inc. (NYSE: LIZ) ($41.56)      2000 EPS: $3.58 from $3.60      Long-Term Attractive    Janet Joseph Kloppenburg, Specialty Retailing/Apparel Manufacturers  "After a conversation with management of Liz Claiborne on Friday, we are fine-  tuning our fiscal 2000 estimate by $0.02 from $3.60 to $3.58," said  Kloppenburg. "We note that our fourth quarter 2000 estimate of $0.96 versus  $0.85 remains unchanged.  However, our newly revised fiscal 2000 estimate  reflects the timing of the share repurchase throughout fiscal 2000.  Thus, due  to the treatment of the calculation of weighted shares outstanding throughout  the fiscal year, we are revising our fiscal 2000 estimate. We also note that  the company has $116 million left in their current share repurchase  authorization.  We are maintaining our fiscal 2001EPS estimate of $4.00, which  represents 11.4% EPS growth.  LIZ currently trades at 10.4 times our fiscal  2001, relatively in line with our long-term secular growth rate of 12%.  We  rate the shares Long-Term Attractive."           Comments        AmeriCredit Corp. (NYSE: ACF) ($26.31)      Buy      Jordan Hymowitz, eCredit & Lending/I-Auto      Justin Hughes, Financial Services    "AmeriCredit trades at a 23% discount to the credit card companies despite  improving credit quality, better profitability, and faster growth," said  Hymowitz and Hughes.  "We have raised our 2001 EPS estimates four times this  year and have raised our estimates 22 times since initiating coverage of the  company in December of 1994.  AmeriCredit priced its most recent  securitization at a weighted average of 6.8%, 27 bps better than last  quarter's securitization.  In addition, the company has recorded 15  consecutive quarters of record earnings.  We reiterate our Buy rating on the  shares with a price target of $44."           APW Ltd.  (NYSE: APW) ($43.00)      Buy      J. Keith Dunne, Electronic Manufacturing Products and Services    "We believe APW has successfully transitioned itself into a leading global  provider of enclosure solutions with unmatched engineering and design  capabilities and the broadest geographic footprint in the industry," said  Dunne. "We believe the company has successfully integrated 18 acquisitions to  date and has established a core marketing capability targeting 22 key  customers that can carry the company well into this century. APW has a  diversified customer base with the top 10 accounting for about 40% of sales  and the leading customer nearer 7%, though we believe new programs with SUNW  could lead to the first 10% customer.    Currently, about 50% of sales are  derived from integrated solutions versus 32% for bare enclosures, 11% for  thermal management products and 7% for power supplies and backplanes. On  9/27/00, we raised our fiscal 2001 Cash EPS from $2.15 to $2.40 and introduced  a fiscal 2002 estimate of $3.30, implying a forward P/E of 16 times, which we  believe is attractive especially given its positive cash flow and an  increasing number of acquisition candidates in the market place. We are  maintaining our Buy rating and expect the current 40% discount to the large  EMS companies to shrink towards 20% over the coming year."           Benchmark Electronics  (NYSE: BHE) ($36.38)      Buy      J. Keith Dunne, Electronic Manufacturing Products and Services    "We believe margins and earnings should continue to increase as Benchmark  continues to ramp a record number of significant new programs with leading  OEMs in instrumentation, medical, enterprise storage and workstation markets,  in our opinion," said Dunne. "We expect internal growth to approximate 40% in  fiscal 2000 and fiscal 2001, significantly above the estimated 8-10% rate  achieved in fiscal 1999. We believe the integration of AVEX is complete and  that management is continuing to seek an Asian footprint, but is being highly  selective to ensure a rapid and smooth transition. In the most recent quarter,  inventory turns and DSOs were better than expected, further indicating the  company's ability to fund rapid growth, despite a tight component environment.  We are maintaining our Buy rating on Benchmark, which is trading at less than  15 times calendar 2001 Cash EPS and only 5.3 times EBITDA, well below recent  acquisition prices for companies with a smaller geographic footprint and fewer  design, engineering and complex manufacturing skills."           Checkfree Corp.  (Nasdaq: CKFR) ($54.14)      Buy      Andrew Jeffrey, eProcessing/ePayment    "We are reiterating our Buy rating on CheckFree  and believe investors  should become increasingly aggressive in owning the shares," said Jeffrey.  "Our conservative DCF analysis implies that the stock can attain a near-term  valuation in the low-$70s and a 12-month target approaching $100. Recent  events suggest that CheckFree's competitive position is being bolstered by two  key market events:  the withdrawal of Metavante's proposed IPO, coupled with  evidence of weakening business trends at the margin, and recent rumblings  within Spectrum, the bank-backed B2C EBPP consortium. We observe increased  evidence that banks are once again spending aggressively on financial  technology in an effort to update systems and offer sticky applications aimed  a bolstering customer retention. We contend that proof of concept is an  essential prerequisite to sustainable economies of scale and high ROIC.  As  such, we contend that CheckFree represents the only 'real' ePayment investment  opportunity today, which should support a relative premium valuation. We  recommend aggressive purchase of CKFR shares."           Sanmina Corp.  (Nasdaq: SANM) ($93.44)      Buy      J. Keith Dunne, Electronic Manufacturing Products and Services    "We believe Sanmina is one of the best managed companies in the industry  with a very successful record of identifying and integrating acquisitions,  both OEM asset divestitures and industry competitors," said Dunne. "On October  24, we increased our EPS estimates 15-20% to reflect broad-based sales gains  and greater incremental benefits and synergies from the integration of Hadco,  one of the world's leading PWB fabricators.  Currently, PWBs represent less  than 25% of sales, though we believe management has plans to significantly  expand capacity to serve internal needs without cutting off current third-  party customers.  Importantly, if PWB markets soften unexpectedly, we believe  Sanmina could shift much of the production to internal uses. We expect  internal revenue growth to remain 40-45% in fiscal 2001 and represent about  90% of the total growth, assuming no further acquisitions, which we believe is  unlikely given a cash position of nearly $1.3 billion and management's proven  skill in identifying and integrating accretive acquisitions. We are  maintaining our Buy rating. Based on our EVIC/ROIC and forward P/E valuation  metrics, Sanmina has traded at current valuations only four times since late  1998."           Industry Updates        EMPS Industry      J. Keith Dunne, Electronic Manufacturing Products and Services    "We believe the EMS industry is within 5% of the trough reached in Fall  1998, based on our Enterprise Value to Invested Capital/Return on Invested  Capital (EVIC/ROIC) timing metric relative to its 12-month moving average,"  said Dunne. "In addition, the forward P/E is 25% below the 12-month average  and 37% below the level achieved at the end of the third quarter of 2000  compared to 26% below the 12-month average in the fall of 1998.  We believe  the mid-1998 trough was the result of significant Asian currency devaluations  in late 1997.  Interestingly, in the last 26 quarters, the EMS industry has  lost more than 5% only two times-during the uncertainties surrounding the  Asian currency devaluation and the current presidential election. We believe  the fundamental growth drivers for the EMS industry are intact with  outsourcing by major OEMs continuing at a torrid pace; the PWB book to bill  remaining above parity and in synch with underlying electronic equipment  demand; and component availability becoming more predictable, though some  custom ASICs and other components could continue to cause temporary shipment  delays."     Unless otherwise noted, prices are as of Friday, November 10, 2000     Robertson Stephens maintains a market in the shares of Cisco Systems, Dell  Computer, L.M. Ericsson, Sun Microsystems, CheckFree Corp., Sanmina, and  Plexus and has been a managing or comanaging underwriter for or has privately  placed securities of AmeriCredit, Benchmark, Celestica and Solectron within  the past three years.     Robertson Stephens, Inc. and its international affiliates ("Robertson  Stephens") is the leading full-service investment bank focused exclusively on  growth companies. The firm provides a comprehensive set of investment banking  products and services, including equity underwriting, sales & trading,  research, M&A advisory, convertible securities, private capital, equity  derivatives, and corporate and executive services. Robertson Stephens  completed 146 deals in the United States and Europe in the first half of 2000  valued at $48.1 billion in aggregate market value including 70 IPOs, 56  follow-ons and 20 convertible transactions. The firm also completed 47 private  capital deals and advised on 43 M&A deals in the first half of this year. The  firm's more than 40 senior equity research analysts cover more than 750  companies. Robertson Stephens, Inc. is a member of the NASD and all major  exchanges.  Robertson Stephens has more than 1,500 employees worldwide with  offices in San Francisco, Boston, New York, Palo Alto, Chicago, Atlanta,  London, Munich and Tel Aviv.     Robertson Stephens, Inc. ("Robertson Stephens") is a NASD member and a  member of all major exchanges and SIPC.     The information contained herein is not a complete analysis of every  material fact respecting any company, industry or security. Although opinions  and estimates expressed herein reflect the current judgment of Robertson  Stephens, the information upon which such opinions and estimates are based is  not necessarily updated on a regular basis; when it  is, the date of the change in estimate will be noted. In addition, opinions  and estimates are subject to change without notice. This Report contains  forward-looking statements, which involve risks and uncertainties. Actual  results may differ significantly from the results described in the forward-  looking statements. Factors that might cause such a difference include, but  are not limited to, those discussed in "Investment Risks." Robertson Stephens  from time to time performs corporate finance or other services for some  companies described herein and may occasionally possess  material, nonpublic information regarding such companies. This information is  not used in the preparation of the opinions and estimates herein. While the  information contained in this Report and the opinions contained herein are  based on sources believed to be reliable, Robertson Stephens has not  independently verified the facts, assumptions and estimates contained in this  Report. Accordingly, no representation or warranty, express or implied, is  made as to, and no reliance should be placed on, the fairness, accuracy,  completeness or correctness of the information and opinions contained in  this Report. Robertson Stephens, its managing directors, its affiliates, its  employee investment funds, and/or its employees, including the research  analysts authoring this report, may have an interest in the securities of  the issuer(s) described and may make purchases or sales while this Report is  accessible.. Robertson Stephens International, Ltd. is regulated by the  Securities and Futures Authority in the United Kingdom. This publication is  not meant for private customers.   Fleet Specialist, Inc. (Member NYSE), an affiliate of Robertson Stephens,  Inc., is the specialist that makes a market in  AutoNation, Inc., Cabletron Systems, Inc., Cash America International, Inc.,  Computer Associates International, Ethan Allen Interiors Inc., FelCor Lodging  Trust Inc., Foundation Health Systems, Inc., Harrah's Entertainment, Inc.,  Hilton Hotels Corporation, The Home Depot, Inc., International Game  Technology, Jones Apparel Group, Inc., MGM Grand, Inc., National Semiconductor  Corporation, Park Place Entertainment Corporation, Scientific-Atlanta, Inc.,  Seagate Technology, Inc., Shurgard Storage Centers, Inc., Station Casinos  Inc., The Talbots, Inc., and Tommy Hilfiger Corporation, and at any given  time, Fleet Specialist may have an inventory position, either "long" or  "short", in this security. As a result of Fleet Specialist's function as a  market maker, such specialist may be on the opposite side of orders executed  on the floor of the Exchange in this security.     Copyright * 2000 Robertson Stephens.      SOURCE  Robertson Stephens         (FBF CLS PLXS SCI JBL LIZ ACF APW BHE CKFR SANM)   CO:  Robertson Stephens; Celestica Inc.; Plexus Corp.; SCI Systems, Inc.;    Jabil Circuit Inc.; Liz Claiborne, Inc.; AmeriCredit Corp.; APW Ltd.;    Benchmark Electronics; Checkfree Corp.; Sanmina Corp.  ST:  California  IN:  FIN  SU:  RTG  
Press spacebar to pause and continue. Press esc to stop.