Sun Microsystems "underweight," estimates reduced

04/18/05 - Morgan Stanley

NEW YORK, April 18 (newratings.com) - Analysts at Morgan Stanley maintain their "underweight" rating on Sun Microsystems (SUNW), while reducing their estimates for the company.

In a research note published this morning, the analysts mention that the company's F3Q results reflect a lack of product cycle momentum. Sun Microsystems' bookings, revenues and backlog declined by 3%, 1% and 8%, respectively, on a y/y basis during the quarter, the analysts say. The company is unlikely to benefit from its new Solaris 10 product offering during FY05, Morgan Stanley adds. The EPS estimates for F4Q05 and FY06 have been reduced to $0.00 and $0.05, respectively.