Markets & Finance

Schwab SoundView Upgrades Harmonic Rating

Schwab SoundView upgraded its investment recommendation on shares of Harmonic (HLIT) to outperform from neutral.

Analyst Dennis Gallagher says his optimism for Harmonic's long-term growth has been improved by the belief that recent announcements of video initiatives by major telecommunications services providers will drive the demand for video encoding and transmission equipment in 2005 as deployments of video over DSL and video into fiber-to-the-premise (FTTP) begin. He believes telco customers will emerge as big part of Harmonic's 2005 revenue. Gallagher sees a growing need for video encoding and multiplexing equipment as multiple systems operators transition networks to all-digital and add high definition channels -- which favors Harmonic's digital strength.

The analyst sees Harmonic's 2004 EPS at 13 cents; he increased his 2005 estimate from 29 cents to 33 cents. He also raised his $12 price target to $12.50.

Toyota's Hydrogen Man

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

blog comments powered by Disqus