Wells Fargo Van Kasper Initiating Coverage on Powerwave Technologies, Inc. With Market Perform Rating

Apr 10, 2001, 01:00 ET from Wells Fargo Van Kasper

    SAN FRANCISCO, April 10 /PRNewswire/ -- J.P. Mark, Telecommunications
 Analyst at Wells Fargo Van Kasper, is initiating coverage on the shares of
 Powerwave Technologies, Inc. (Nasdaq:   PWAV)($10.54) with a Market Perform
 rating.
 
     Below are quotations from Mr. Mark's research report:
 
     -- We are initiating coverage of Powerwave Technologies, Inc. with a
        Market Perform rating.
     -- In our opinion, Powerwave is the leading public, non-captive power
        amplifier manufacturer in the industry.
     -- Powerwave has secured leading power amplifier outsourcing contracts
        from Motorola, Nortel, and Lucent.  The company is also the preferred
        supplier of MCPAs for Cingular Wireless.  We believe that Powerwave
        currently holds a 40% share of the power amplifier market.  The company
        is growing at 35% and, in our opinion, appears to be gaining market
        share against its main public competitor, Spectrian.
     -- We are very impressed with Powerwave and its long-term prospects.
        However, in the current market, telecom equipment stocks have been
        saddled with reduced valuations.  Additionally, Nortel has recently
        pushed out large 3G orders.  Therefore, we believe that a Market
        Perform rating on the shares of Powerwave is warranted.
     -- Powerwave should benefit from an increased number of cell sites as a
        result of extra data traffic on wireless networks and new 3G networks;
        however, we would stay on the sidelines until we see volume orders for
        new base stations and, subsequently, power amplifiers.
     -- Powerwave shares currently trade at approximately 42.2x (a discount to
        the industry average of 55.1x) our CY01 earnings estimate of $0.25.  In
        our opinion, such a valuation disparity makes little sense.  We believe
        that, based on the fact that Powerwave is faster growing and appears to
        be taking market share from Spectrian in next-generation infrastructure
        markets, Powerwave should trade at a premium to Spectrian, which
        trades at a P/E of 99.2x our CY01 earnings estimate.
 
     Wells Fargo Van Kasper makes a market in the shares of Powerwave
 Technologies, Inc.
 
     Wells Fargo Van Kasper is a private brokerage and investment banking firm.
 Since its founding in 1978 as Van Kasper & Company, the firm has been
 providing exceptional services and original investment advice to a select
 group of investors and businesses. The firm's offices are located in Fresno,
 Los Angeles, Newport Beach, Rancho Bernardo, San Diego, San Francisco, San
 Jose, and Walnut Creek, California, as well as Phoenix, Arizona, Portland,
 Oregon, and Salt Lake City, Utah.
     Investments made through Wells Fargo Van Kasper:  (1) are not insured by
 the FDIC; (2) are not deposits or other obligations of, or guaranteed by,
 Wells Fargo Van Kasper, Wells Fargo & Company or any of its affiliates; (3)
 are not guaranteed by any Federal governmental agency (excluding U.S.
 Government and federal agency securities); and (4) are subject to investment
 risks, including possible loss of principal amount invested.
     The study on these pages is not a complete analysis of every material fact
 regarding any company, industry or security. The opinions expressed herein
 reflect the judgment of the author at this date and are subject to change
 without notice. Facts have been obtained from sources considered reliable, but
 are not guaranteed. Wells Fargo Van Kasper, its directors and employees and
 their families may have a position in the securities of the companies
 described herein, and may make purchases or sales while this report is in
 circulation. Additional information is available upon request.
 
     Wells Fargo Van Kasper is a member of the National Association of
 Securities Dealers, CRD number 7665.
 
 

SOURCE Wells Fargo Van Kasper
    SAN FRANCISCO, April 10 /PRNewswire/ -- J.P. Mark, Telecommunications
 Analyst at Wells Fargo Van Kasper, is initiating coverage on the shares of
 Powerwave Technologies, Inc. (Nasdaq:   PWAV)($10.54) with a Market Perform
 rating.
 
     Below are quotations from Mr. Mark's research report:
 
     -- We are initiating coverage of Powerwave Technologies, Inc. with a
        Market Perform rating.
     -- In our opinion, Powerwave is the leading public, non-captive power
        amplifier manufacturer in the industry.
     -- Powerwave has secured leading power amplifier outsourcing contracts
        from Motorola, Nortel, and Lucent.  The company is also the preferred
        supplier of MCPAs for Cingular Wireless.  We believe that Powerwave
        currently holds a 40% share of the power amplifier market.  The company
        is growing at 35% and, in our opinion, appears to be gaining market
        share against its main public competitor, Spectrian.
     -- We are very impressed with Powerwave and its long-term prospects.
        However, in the current market, telecom equipment stocks have been
        saddled with reduced valuations.  Additionally, Nortel has recently
        pushed out large 3G orders.  Therefore, we believe that a Market
        Perform rating on the shares of Powerwave is warranted.
     -- Powerwave should benefit from an increased number of cell sites as a
        result of extra data traffic on wireless networks and new 3G networks;
        however, we would stay on the sidelines until we see volume orders for
        new base stations and, subsequently, power amplifiers.
     -- Powerwave shares currently trade at approximately 42.2x (a discount to
        the industry average of 55.1x) our CY01 earnings estimate of $0.25.  In
        our opinion, such a valuation disparity makes little sense.  We believe
        that, based on the fact that Powerwave is faster growing and appears to
        be taking market share from Spectrian in next-generation infrastructure
        markets, Powerwave should trade at a premium to Spectrian, which
        trades at a P/E of 99.2x our CY01 earnings estimate.
 
     Wells Fargo Van Kasper makes a market in the shares of Powerwave
 Technologies, Inc.
 
     Wells Fargo Van Kasper is a private brokerage and investment banking firm.
 Since its founding in 1978 as Van Kasper & Company, the firm has been
 providing exceptional services and original investment advice to a select
 group of investors and businesses. The firm's offices are located in Fresno,
 Los Angeles, Newport Beach, Rancho Bernardo, San Diego, San Francisco, San
 Jose, and Walnut Creek, California, as well as Phoenix, Arizona, Portland,
 Oregon, and Salt Lake City, Utah.
     Investments made through Wells Fargo Van Kasper:  (1) are not insured by
 the FDIC; (2) are not deposits or other obligations of, or guaranteed by,
 Wells Fargo Van Kasper, Wells Fargo & Company or any of its affiliates; (3)
 are not guaranteed by any Federal governmental agency (excluding U.S.
 Government and federal agency securities); and (4) are subject to investment
 risks, including possible loss of principal amount invested.
     The study on these pages is not a complete analysis of every material fact
 regarding any company, industry or security. The opinions expressed herein
 reflect the judgment of the author at this date and are subject to change
 without notice. Facts have been obtained from sources considered reliable, but
 are not guaranteed. Wells Fargo Van Kasper, its directors and employees and
 their families may have a position in the securities of the companies
 described herein, and may make purchases or sales while this report is in
 circulation. Additional information is available upon request.
 
     Wells Fargo Van Kasper is a member of the National Association of
 Securities Dealers, CRD number 7665.
 
 SOURCE  Wells Fargo Van Kasper