UBS Piper Cuts Gateway Estimates
UBS Piper cut estimates on Gateway (GTW ) but kept the buy rating.
Analyst Ashok Kumar says the salesforce workforce reduction is expected to cut deeper into the company's customer support division, which already ranks among the lowest in the industry. He notes Gateway also is closing down operations in Asia (7% of revenues), will imminently withdraw from Europe (5% of revenues); this should benefit Compaq.
Kumar cut the $6.7 billion calendar 2001 revenue estimate to $6.4 billion, and cut the $7 billion calendar 2002 to $6 billion. He views restructuring as more of a desperate attempt to cut expenses faster than sales, rather than a strategic alignment of business resources.
Kumar says Gateway's stock is fairly valued at current levels.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- In One Tweet, Kylie Jenner Wiped Out $1.3 Billion of Snap's Market Value
- The Two Words That Will Help Get an Airline Upgrade Over the Phone
- Apple Plans Upgrades to Popular AirPods Headphones
- U.S. Stocks End Mixed as Bonds Gain, Dollar Slumps: Markets Wrap
- Los Angeles Cracks Down on Out-of-Control Hollywood Party Houses