Prudential Starts UTStarcom with 'Buy'

Analyst Inder Singh says the broadband company will likely maintain its strong sales and earnings momentum

Prudential initiated coverage of UTStarcom (UTSI ) with buy.

Analyst Inder Singh says he believes UTStarcom will likely maintain its strong sales and earnings momentum. He cite the company's leadership in wireless personal-handyphone systems in China, a strong backlog, and excellent visibility. He notes UTStarcom is the dominant personal-handyphone systems vendor in China with about a 60% market share.

He says UTStarcom has enjoyed strong demand for its phones, driving revenues to $982 million in 2002, from $188 million in 1999. He believes the surge in personal-handyphone systems deployments suggests this technology has staying power as an alternative to cellular. Singh sees $1.52 2003 earnings per share, and $1.83 for 2004; he also set a $47 target.

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