Bear Stearns Upgrades Sun Micro to Peer Perform
Bear Stearns upgraded server-manufacturer Sun Microsystems (SUNW ) to peer perform from underperform.
Analyst Andrew Neff notes while Sun's revenue outlook remains lackluster, he's encouraged by the software company's execution on cost/expense and generating cash. He notes that the company has potential for operational leverage.
Neff sees Sun, the No. 3 maker of corporate servers, as a turnaround situation, not a growth story, since the company has shown progress returning to breakeven, cash generation, and revenue growth. While he doesn't see momentum yet, it's outlook is not getting worse.
He notes that the non-GAAP breakeven first quarter, vs. his 5-cent loss and the consensus 3-cent loss estimates, were driven by better gross margins and expenses. He narrowed the a 9-cent 2005 (Jun) GAAP loss estimate to a 1-cent loss and set a $4 fair value.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Apple Is Secretly Developing Its Own Screens for the First Time
- Hong Kong's Richest Woman Loses Half Her Wealth on Stock Plunge
- Snowstorm Looms as Spring Begins in Washington, Mid-Atlantic
- From a $126 Million Bonus to Jail: The Fall of a Star Trader
- Facebook on Defensive as Cambridge Case Exposes Data Flaw