|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |
JUNE 9, 2003
The Truth about Veritas Veritas Software (VRTS ), like many other former tech highfliers, disappeared from view -- after plummeting from 174 in 2000 to 10 in late 2002. Now, it's back in favor with some investment managers. Veritas, No. 1 in data-storage management systems, rebounded lately -- to 25 on May 28. And Benjamin Pace, managing director at Deutsche Bank, which owns the stock, expects it to hit 33 in a year. He has upped tech holdings to 20% in his $8 billion portfolio -- way above their 13% share in the Standard & Poor's 500-stock index. Last year, his tech holding was way below the S&P's level. "That's a bold move for us, especially because many techs sport rich [price-earnings] ratios," says Pace. He favors Veritas, now at 34 times his 2004 earnings estimate of 73 cents a share, in anticipation of stronger operating earnings -- as info-tech spending ratchets up with the economy. Veritas, which acquired Seagate's (STX ) storage operations in 1999, will be a tech leader as industry demand recovers, says Pace. He sees 2003 earnings of 65 cents. His numbers are in line with consensus estimates. This year, he expects Veritas revenues ($1.5 billion in 2002) to rise 7% in 2003 and 10% in 2004. Robert Stimson of Banc of America Securities, who rates Veritas a buy, has an even higher 2004 estimate of 77 cents. Veritas' big customers include Microsoft, IBM, Dell, and Hewlett-Packard. Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them. By Gene G. Marcial Get BusinessWeek directly on your desktop with our RSS feeds. ![]() Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page | |