S-A Rates Upgrade


SG Cowen Securities Corp. raised its rating on Scientific-Atlanta Inc. from "buy" to "strong buy" after the set-top maker reported better-than-expected earnings. Cowen-which set a price target of between $70 and $75 per share-said S-A stands to benefit from the domestic cable industry's need to upgrade its infrastructure. S-A is experiencing a ramp-up in shipments of two-way digital set-tops that should see continued strength and momentum. S-A reported earning $38.1 million, or 23 cents per share, in its fiscal third quarter, compared with a profit of $20.8 million (13 cents) in the same period last year. The company beat forecasts by about 3 cents per share.