Banc of America Hikes Sun Micro Rating

Analyst Joel Wagonfeld believes the stock's recent pullback provides an attractive entry point

Banc Of America Securities upgraded its investment recommendation on shares of Sun Microsystems (SUNW ) to buy from market perform, and set a $10 price target.

Analyst Joel Wagonfeld believes the stock's recent pullback provides an attractive entry point prior to resumed IT spending, which should provide top-line growth starting in the second half of 2002. The stock fell over 40% in the last 30 trading days. Wagonfeld says the current valuation reflects more realistic growth prospects. He has higher confidence in his 9% normalized revenue growth estimate. Wagonfeld sees Sun's recent decisions to introduce its family of low-end Lintel servers and to expand its line of Cobalt servers as a reflection of its increased willingness to adapt its model. He views this as positive for overall growth.

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