) to buy from neutral.
Analyst Jeffrey Schlesinger says he's increasingly confident that Tekelec can post 15% revenue growth in its core signaling equipment business in the coming quarters. He expects increased U.S. demand, further penetration into international markets, and more operating efficiency. For the core signaling business, he upgraded the 2004 estimates of 52 cents earnings per share and $276 million in revenues to 57 cents earnings per share and $295 million in revenues.
For Tekelec, which also includes the Santera soft switch business, he upped the 43 cents 2004 earnings per share estimate to 45 cents, and sees $312 million in revenue. For 2005, he sees 69 cents earnings per share on $328 million revenues for the core signaling business, and 59 cents earnings per share on $359 million revenue for Tekelec.
Also, Schlesinger upped the $13 target to $20.