) to buy from long term buy following a 10% revenue rise.
Analyst Walter Winnitzki says the PC maker's Q4 results were at the "upper end of recently reduced guidance," but says the real story is further traction in the company's shift to becoming an enterprise systems company. He sees $1.15 EPS for 2001.
Winnitzki sees positive benefits to Compaq's business model, and says the company will not chase market share but will continue to focus on making changes to improve profitability (supply chain, mix), which will translate into slower, but more profitable growth.
Slower sales guidance is not quite as low as expected, says Winnitzki, who thinks Compaq's valuation should rise along with its business model transition.