Salomon Smith Barney upgraded Comverse Technology (CMVT ) to buy.
Analyst Victor Halpert says results were above expectations. The backlog grew to $325M from $319M. While the backlog grew slower than sales, he views the fact that it did grow in absolute terms as a sign of the company's strength in the enhanced services space. He believes the fact that the company exceeded estimates and raised Q2 guidance, while maintaining fiscal 2003 guidances in the face of current market conditions further underlines it market leadership. He believes shares have declined unjustifiably over the past few months. Halpert bumped his $1.78 fiscal 2002 (March) EPS to $1.79, and raised the $1.52B revenue estimate to $1.53B. He has a $100 target.