Enron Corp. - University of California | Office of The President

MANAGEMENT MEETING BRINGS MORE CONFIDENCE AFTER SKILLING
DEPARTURE; REITERATE BUY
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• Meeting with senior management has reaffirmed our confidence in Enron
staying the course strategically.
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We reiterate our Buy rating on Enron following a meeting with senior
management last night. We are maintaining our target price of $90 ....
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... [W]e continue to believe that fundamentally the company is better positioned
today than it has ever been.
353. On 8/17/01, Lehman Brothers issued a report on Enron. It continued to rate Enron
a "Strong Buy," continued to forecast 01 and 02 EPS of $1.82 and $2.18 and continued to forecast
a 20% five-year EPS growth rate for Enron. It also stated:
• Last night, we met with Ken Lay and other members of senior
management. The Enron machine is in top shape and continues to roll
along. We don't see any reason to change our estimates or outlook.
354. On 8/17/01, CS First Boston issued a report on Enron. It continued to rate Enron a
"Strong Buy" and continued to forecast 01 and 02 EPS of $1.80 and $2.25 EPS for Enron. It also
stated:
ENE fell a further 8% yesterday mostly related to speculation of negative issues
surrounding the departure of Mr. Jeff Skilling as CEO....
... [I]ntensive meetings with ENE management continue to show no truth to any
of the speculations, which caused the share price decline.
Further comments and discussions show that business trends are good and ENE
is in position to meet or exceed the 20% eps growth rate model we have estimated.
355. On 8/28/01, Enron was reiterated a "Strong Buy" by analyst William J. Maze at Bank
America with a 12-month target price of $60 per share.
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