), saying the stock looks expensive.
Analyst Gunnar Miller says the stock is up over 20% in three months, but thinks it will give back recent gains as investors come to grips that this isn't a downturn of short duration. He notes reverse operating leverage is more pronounced than he modeled, and says business continues to trend below the historical replacement rate levels that marked the fundamental bottom in previous downturns.
Miller cut the $0.41 2001 operating EPS estimate to a $0.27 loss, and cut the $1.75 2002 EPS to $0.80 EPS. He keeps the stock on Goldman's recommended list only to indicate the company's strong relative market position, and he would wait until the stock retraces toward $30 before buying.