CS First Boston Starts Lexar Media with Outperform

Analyst George Wendemeyer likes the digital-film product maker's strong brand and extensive distribution

CS First Boston initiated coverage on Lexar Media (LEXR ) with outperform.

Analyst George Wendemeyer says the company is the leading designer and distributor of flash-memory products for use in mobile consumer electronic devices such as cell phones and digital cameras. He says its strong brand and extensive distribution led to 21% market share, and left the company well-positioned to capitalize on the expected continued explosive growth in mobile consumer electronics end-markets.

He notes Lexar outsources manufacturing, which eliminates the need for a costly fixed-asset base and investments in manufacturing technology. Wendemeyer sees 4 cents 2004 EPS and 54 cents in 2005. He set a $10 12-month target.