) to buy from hold.
Analyst Tristan Gerra says revenue was in line with guidance, while EPS, excluding pro-forma tax adjustments, was$0.01 higher than her estimate. She thinks current valuation is compelling, with the stock trading at 14.5 times and 2.2 times her calendar 2003 EPS and revenue estimates, respectively.
Gerra sees $1.20 fiscal 2003 (March) EPS, and $1.46 for fiscal 2004. She believes current valuation reflects sub-$1.00 EPS levels, and sees little downside to her new estimates, which she believes reflects conservative pricing and market share assumptions. Gerra has a $40 target.