Robbie Stephens Boosts Openwave to 'Strong Buy'

Analyst Marianne Wolk says the maker of wireless-phone software should benefit from a wider spread of new services and handsets

Robertson Stephens upgraded Openwave Systems (OPWV ) to strong buy from buy.

Analyst Marianne Wolk says the new application deals increases her confidence in near-term EPS. She continues to believe the major inflection point in EPS is calendar Q4, with the onset of a wider spread of availability of new 2.5G services and handsets, which should spur greater wireless data adoption in Europe and the U.S. She notes the strong ramp in handsets by Nokia in late calenda Q4, or early 2002, would also mean an upside.

Wolk sees gradual improvement in wireless data adoption into 2002. She sees $0.50 for fiscal 2002 (June), and $0.80 for fiscal 2003. Wolk also has a $25 target.