With personal computers now a fixture in the office, what's next? How about picking up the phone and seeing the person you're calling on your screen? That's what Target Technology got a patent for--a so-called C-Phone that would let PCs function as a video phone system. Some investors have snapped up shares of Target, which went public on Aug. 19 at 7 and has since risen to 8.

David Hillson of Josephthal Lyon & Ross, the New York securities firm that underwrote the initial public offering, insists Target could hit 20 in 1 1/2 years. "We believe video telephone for business will be truly revolutionary," he says. "And the C-Phone is right in the middle of this new communications wave."

If Target can translate its lead into even a small share of the market, its sales should soar, says Hillson. He concedes that the competition is stiff, with Intel, AT&T, PictureTel, Compression Labs, and Datapoint very much in

videoconferencing, too. Nevertheless, he foresees sales of 10,000 C-Phones in the year ending February, 1996, and 30,000 the following year. For 1996, he forecasts revenues of $14 million and earnings of 20 cents to 25 cents a share; for 1997, revenues of $35 million, and earnings of $1.10 to $1.25.

Target has attracted investors overseas. Lars Kallhol of Ohman Securities in Stockholm says he's "thrilled" by Target's technology and has bought stock.

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