BMO Nesbitt Cuts JDS Uniphase Estimates

Analyst Brian Piccioni doesn't think the telecom-equipment sector has reached bottom yet

BMO Nesbitt lowered its estimates and price target on JDS Uniphase (JDSU ).

Analyst Brian Piccioni says JDS is clearly the leading supplier of photonic components, a market position that he thinks the company will retain for many years. He believes the current chaos in the telecom-equipment market is transient in nature, although aftershocks may last several quarters. Because this industry slowdown is likely transient, he thinks the negative impact on JDS's EPS growth also is short-lived.

Nevertheless, Piccioni thinks that all negative news is not yet out in this sector, and he lowered his $0.74 fiscal 2001 (June) EPS estimate to $0.69, lowered his $0.91 fiscal 2002 estimate to $0.75, and cut his $1.09 fiscal 2003 estimate to $0.89. He also cut the $66 target to $45.

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