Salomon SB Upgrades Macromedia to Buy
Salomon Smith Barney upgraded Macromedia (MACR ) to buy from neutral.
Analyst Jonathan Rosenzweig says MACR stock plunged in recent weeks. After reaching $27 in December, the stock is now only $13, or a firm value to revenue multiple of just 1.86 times, he says. Sentiment toward the company's name clearly has been very weak, he says. He notes the company is on the cusp of a significant product upgrade cycle. With its Flash 6.0 player already available, it seems Flash 6.0 will be the first of several new product releases and upgrades, he says. He notes shipments could start as early as March, which could add some cushion to its top line.
The analyst set $0.60 fiscal year 2004 (ending March) EPS estimate. He also raised his $15 price target to $17.