Morgan Stanley Favorite: Nortel
Wireline networking equipment sector upgraded to “attractive”
Thursday, March 25, 2004 9:47:54 AM ET
Morgan Stanley
NEW YORK, March 25 (New Ratings) - Analysts at Morgan Stanley upgrade the wireline networking equipment sector from “in-line” to “attractive.”
According to Morgan Stanley's research note published this morning, the analysts mention that the industry is facing an inflection point in carrier capital expenditure and enterprise spending levels. The analysts mention that the earnings outlook for wireline networking equipment companies is strong for the near term. An expected upgrade cycle in carrier data networks is likely to drive the earnings in the wireline networking equipments sector in the forthcoming quarters, the analysts add.
Re: Morgan Stanley Favorite: Nortel
by: wilddarkbull
Long-Term Sentiment: Strong Buy 03/25/04 11:43 am
Msg: 467911 of 467916
Not just Morgan Stanley sees great potential in Nortel. Most of the analysts do too.
NT is currently undervalued.
NT is ahead of competition in 3G and VoIP - two very hot segments in telecoms in the next years.
Just a quick analysis to see the potential for NT stock.
NT's internal objective for 2004 are:
Sales (S): 12.5B$
Earnings (E): 2.5B$
Here is how NT price compare to other tech leaders:
M: Market Capitalization in B$
S: Sales in B$
E: Earning in B$
Company M 2004S M/S 2004E M/E
NT 23.8 12.5 1.9 2.5 9.5
CSCO 154.6 24.2 6.4 5.9 26.0
DELL 84.2 49.7 1.7 3.3 25.5
INTC 171.8 36.1 4.7 7.0 24.4
NOK 94.1 39.9 2.4 6.3 14.9
MSFT 265.8 43.0 6.2 9.2 29.1
BRCM 11.5 2.4 4.8 0.5 23.0
TXN 48.1 12.3 3.9 1.8 26.7
JNPR 9.8 1.0 9.4 0.3 32.8
EMC 30.8 7.8 3.9 1.5 19.9
NT right value is about 12$ (Meaning M/R= 4 and M/E= 20).
Conclusion:
Now is the opportunity to LOAD NT.
Morgan Stanley mentions that the improving IT infrastructure and the deployment of VoIP (Voice over Internet Protocol) services are likely to boost the earnings potential of wireline networking equipment companies in the forthcoming quarters. Many companies have reported that order flows have been strong, while OEM companies have enough orders for another three-to-four months, the analysts add.
Morgan Stanley's favourite stocks in the wireline networking equipments sector at present are 3Com and Nortel Networks.
Wireline networking equipment sector upgraded to “attractive”
Thursday, March 25, 2004 9:47:54 AM ET
Morgan Stanley
NEW YORK, March 25 (New Ratings) - Analysts at Morgan Stanley upgrade the wireline networking equipment sector from “in-line” to “attractive.”
According to Morgan Stanley's research note published this morning, the analysts mention that the industry is facing an inflection point in carrier capital expenditure and enterprise spending levels. The analysts mention that the earnings outlook for wireline networking equipment companies is strong for the near term. An expected upgrade cycle in carrier data networks is likely to drive the earnings in the wireline networking equipments sector in the forthcoming quarters, the analysts add.
Re: Morgan Stanley Favorite: Nortel
by: wilddarkbull
Long-Term Sentiment: Strong Buy 03/25/04 11:43 am
Msg: 467911 of 467916
Not just Morgan Stanley sees great potential in Nortel. Most of the analysts do too.
NT is currently undervalued.
NT is ahead of competition in 3G and VoIP - two very hot segments in telecoms in the next years.
Just a quick analysis to see the potential for NT stock.
NT's internal objective for 2004 are:
Sales (S): 12.5B$
Earnings (E): 2.5B$
Here is how NT price compare to other tech leaders:
M: Market Capitalization in B$
S: Sales in B$
E: Earning in B$
Company M 2004S M/S 2004E M/E
NT 23.8 12.5 1.9 2.5 9.5
CSCO 154.6 24.2 6.4 5.9 26.0
DELL 84.2 49.7 1.7 3.3 25.5
INTC 171.8 36.1 4.7 7.0 24.4
NOK 94.1 39.9 2.4 6.3 14.9
MSFT 265.8 43.0 6.2 9.2 29.1
BRCM 11.5 2.4 4.8 0.5 23.0
TXN 48.1 12.3 3.9 1.8 26.7
JNPR 9.8 1.0 9.4 0.3 32.8
EMC 30.8 7.8 3.9 1.5 19.9
NT right value is about 12$ (Meaning M/R= 4 and M/E= 20).
Conclusion:
Now is the opportunity to LOAD NT.
Morgan Stanley mentions that the improving IT infrastructure and the deployment of VoIP (Voice over Internet Protocol) services are likely to boost the earnings potential of wireline networking equipment companies in the forthcoming quarters. Many companies have reported that order flows have been strong, while OEM companies have enough orders for another three-to-four months, the analysts add.
Morgan Stanley's favourite stocks in the wireline networking equipments sector at present are 3Com and Nortel Networks.
