CIBC World raised its estimate on Foundry Networks (FDRY).
Analyst Steve Kamman says the company's third-quarter guidance exceeded his $0.04 earnings per share estimate on a $75 million revenue estimate. He says management's comments that a backlog remains strong and the book-to-bill ratio is over one going into the fourth quarter suggests that current momentum is sustainable.
Kamman finds that the company's ability to reposition to enterprise sales over the past year is impressive, although he remains cautious on the sector outlook: He expects the 2003 IT budgets to be flat or down from here. He raised his $0.14 2002 earnings per share estimate to $0.16, and maintains his $0.18 2003 estimate. He continues to rate the company as sector perform with a $7 price target.