Reuters Maxtor poised to hit $6 Sunday October 9, 5:14 pm ET
NEW YORK (Reuters) - Maxtor Corp. (NYSE:MXO - News) shares, currently at $4.21, could soon rise to $6.00, an analyst said in Barron's this weekend, as the world's No. 3 disk-drive maker's OneTouch II external hard drive sells briskly. Maxtor's consumer electronics division accounts for just 5 percent of total revenue, but executives expect the unit's sales to grow by 30 percent annually through 2010, compared with growth of about 10 percent for the rest of the company's business, Barron's said.
"If the company continues to implement its plans successfully, bulls maintain, the shares, recently at 4, could easily rise by 50% and possibly much more," Barron's said.
Rich Kugele, analyst at brokerage firm Needham & Co, has a short-term price target of $6 on Maxtor shares and said that if Maxtor matches the industry's enterprise value-to-sales multiple the stock could triple or even quadruple, Barron's reported.
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