) to overweight from neutral.
Analyst Paul Coster believes 3G activity levels will stimulate demand for the company's protocol testers. He says based on analysis conducted by Agilent, he believes the setup for a 2.5G call leads to an 8-fold increase in signaling messages relative to a 2G GSM call.
He says, as the industry moves to 3G, he expects 3 to 4 times increase in signaling complexity coupled with increasing volumes on network.
Owing to increased levels of 3G development activity, he raises 16.6% fiscal 2005 (ending September) sales growth estimate to 17.9% and raises $1.06 earnings per share forecast to $1.09.