Capex Cuts by MSOs Cloud S-A's Outlook10/06/2002 8:00 PM Eastern
Salomon Smith Barney Inc. initiated coverage on Scientific-Atlanta Inc. with an "in-line" rating and set a 12-month price target of $14. Although Salomon was encouraged by S-A's strong management and significant market share, it remains cautious in the near term, mainly due to expectations that cable operators will reduce their capital spending by 15 percent in 2003, as upgrade cycles wind down. Although S-A's digital set-top sales are more success-based, Salomon said it still expects the company to be affected by the capital-expenditure reductions. In 4 p.m. trading on Oct. 2, S-A stock closed at $12.21, down 86 cents.