Thomas Weisel upgraded Tektronix (TEK) to outperform from peer perform.
Analyst Ajit Pai says he upgraded based on three key considerations. First, his analysis reflects improvement in R&D spending trends in key end markets. Second, recent peer group results in Tektronix' core market applications show solid improvement. And lastly, he likes the company's improved leverage to a recovery.
Pai says his view for Tektronix' prospects, both near and medium term, are more favorable than the general perception, as reflected in his 13 cents first-quarter earnings per share estimate, and the 75 cents fiscal 2004 (May). Pai thinks Tektronix is inexpensive, trading at 13 times (excluding cash) his $1.00 fiscal 2005 earnings per share estimate.