Bear Stearns upgrades Symbol Technologies (SBL ) to outperform from peer perform.
Analyst Philip Alling says his upgrade is based on improving visibility into radio frequency identification (RFID), and mobile computing growth. He also cites margin expansion opportunities that should propel earnings per share growth.
Alling says the company is well-positioned to take advantage of growth in mobile computing in retail and other verticals including health care. He believes RFID is a major growth opportunity, and Symbol is the best-positioned player.
He raises his 10 cents fourth-quarter earnings per share estimate to 11 cents, and 60 cents 2005 to 62 cents. He sets his 83 cents 2006 estimate, vs. the Street's 76 cents. He sets a $21 target.