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Information technology services industry

Robertson Stephens Initiates Coverage on Several Companies, Expressing Positive Outlook

Strategic Insights

— 1 min read

Robertson Stephens, a leading full-service investment bank, has initiated coverage on several companies, including CoSine Communications, Network Appliance, COR Therapeutics, Exult, Mentor Graphics, and Homestore.com, expressing a positive outlook for each firm. The analysts at Robertson Stephens have upgraded or initiated coverage on these companies, citing various factors such as strong market performance, innovative products, and significant revenue growth opportunities.

Key Takeaways:

  • CoSine Communications is expected to see upside surprise in revenues and earnings as the market for next-generation broadband services accelerates over the next few years.
  • Network Appliance's valuation is rich, limiting upside, but the company remains a leader in the NAS and Storage Systems market and will continue to take share from general-purpose server vendors.
  • COR Therapeutics' shares were volatile after a negative study result, but the general consensus is that this trial has no impact on product use, and a meta-analysis of previous trials shows a 40% reduction in MACE at six months.
  • Exult's long-term sustainable revenue growth rate benefits from recent agreements, including a five-to-seven year arrangement with BP Amoco's ARCO unit.
  • Mentor Graphics is expected to build backlog in a quarter where the company typically uses backlog, and the analyst reiterates a Buy rating based on business fundamentals and a strengthening design automation cycle.
  • Homestore.com has established itself as the undisputed bellwether stock in the Real Estate Technology sector, and its outstanding operating and financial performance may lead to a wave of IPOs that further validates the legitimacy of the sector.

Statistics:

  • CoSine Communications' stock price is $47.19.
  • Network Appliance's stock price is $148.63.
  • COR Therapeutics' stock price is $55.94.
  • Exult's stock price is $16.00.
  • Mentor Graphics' stock price is $20.00.
  • Homestore.com's stock price is $36.94.
  • Robertson Stephens completed 146 deals in the United States and Europe in the first half of 2000 valued at $48.1 billion in aggregate market value.
  • Robertson Stephens has more than 40 senior equity research analysts covering more than 750 companies.

Sources:

  • Robertson Stephens, Inc. (as issued by PRNewswire)
  • Robertson Stephens International, Ltd. (as regulated by the Securities and Futures Authority in the United Kingdom)

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