CIBC Upgrades Ericsson to 'Sector Perform'

Analyst Dale Pfau expects handset sales to continue growing in 2003

CIBC World upgraded Ericsson (ERICY ), Powerwave (PWAV ), LCC International (LCCI ), and Qualcomm (QCOM ) to sector perform from sector underperform.

Analyst Dale Pfau says the higher ratings are based on an upgrade of the wireless technology sector to overweight from market weight. He expects handset sales to continue growing in 2003, and expects the infrastructure market to possibly show modest growth in 2004. Pfau believes the handset replacement rate has begun to rise on the back of exciting new models. He sees shipments of 464 million in 2003, compared with an expected conservative forecast of 430 million to 445 million from original equipment manufacturers. Pfau sees a 10% decline in 2003 industry revenue, but he thinks the first half could mark a bottoming out of the down-tren