Piper Jaffray Initiates Coverage of Encad,Inc.MINNEAPOLIS--(BUSINESS WIRE)--Nov. 19, 1997--Piper Jaffray Inc. is initiating coverage today of ENCAD (ENCD-NASDAQ NM, 38 3/8) with a Strong Buy rating. Piper Jaffray Piper Jaffray & Co. (NYSE: PJC), often shortened to just Piper Jaffray or PiperJaffray, is a U.S. middle-market investment banking firm based in Minneapolis, Minnesota and is a focused on delivering financial advice, investment products and transaction execution Senior Research Analyst Hany Nada made the announcement as part of the continuing roll-out of his coverage of the Computer Graphics Imaging industry. The coverage was initiated with the help of Safa Rashtchy who recently joined Nada's team as a digital imaging analyst. ENCAD is a worldwide leading innovator in the fast growing digital imaging technology market. The company develops, manufactures and markets a wide range of wide-format color inkjet printers A printer that propels droplets of ink directly onto the medium. Today, almost all inkjet printers produce color. Low-end inkjets use three ink colors (cyan, magenta and yellow), but produce a composite black that is often muddy. , supplies and software utilities. ENCAD revolutionized Large Format printing in 1991 with the introduction of the first color inkjet printer for large graphics output. ENCAD is part of the fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive digital imaging and printing technologies market that offers users unprecedented possibilities for creation, manipulation and output of images and data. ENCAD recently introduced new products in both the high and low-ends of the spectrum, expanding its target market and offering the broadest product line in the industry. "We expect significant growth from ENCAD's new high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. Pro e series of printers, as well as new products anticipated to be introduced in 1998," said Nada. "The fast-paced Adj. 1. fast-paced - of communication that proceeds rapidly; "a fast-paced talker"; "fast-paced fiction" fast - acting or moving or capable of acting or moving quickly; "fast film"; "on the fast track in school"; "set a fast pace"; "a fast car" product introduction cycle and the innovations in technology have given ENCAD a solid competitive advantage. This position is fortified fortified (fôrt  ´fīd),adj containing additives more potent than the principal ingredient. by ENCAD's unmatched distribution network, consisting of over 2,000 resellers in 67 countries. "We also believe the increasingly lucrative and expanding supplies business will contribute significantly to ENCAD's revenue growth," Nada said. "With its dominant market share and brand recognition, ENCAD is in a superior position to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. an addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market that is growing at 35 to 50 percent which, by conservative estimates, will top $2 billion by the year 2000." Nada said he expects ENCAD's revenue and earning to grow at over 35 percent annually for the next three to five years. "We believe this growth is achievable given ENCAD's franchise and strong market share, its broad and innovative product line, and the expected 40 to 50 percent growth in the LFDP market itself. Our 12-month target price is $50 to $55 per share," Nada said. The Computer Graphics Imaging group, headed by Hany Nada, has produced several industry and sector reports on Digital Imaging and Printing, Multimedia, and Design Automation. Nada is a leading expert on Digital Imaging and Printing and was one of the first Wall Street analysts to focus on this industry. His team includes Gene Munster, who specializes in multimedia software and digital video companies, and Safa Rashtchy. Rashtchy, a veteran of the computer graphics and imaging industry, joined Piper Jaffray recently following the sale of the leading-edge digital imaging company he had founded. Piper Jaffray Inc.'s Equity Research department covers 270 companies and has 50 research analysts and associates. The department has doubled in size within the last year. Piper Jaffray Inc. makes a market in the company's common stock and/or another company security. Founded in 1895, Piper Jaffray Inc. has grown to become one of the nation's largest full-service investment firms. Piper Jaffray has built a reputation as a premier investment banking firm by focusing on the needs of growth companies in health care, technology, financial, consumer and industrial growth. Piper Jaffray has capital markets offices in 17 cities. Piper Jaffray also provides investment guidance through more than 1,220 investment executives employed in 89 retail sales offices in 17 states. Other subsidiaries of parent company Piper Jaffray Companies Inc. include Piper Jaffray Ventures, a private equity venture capital firm, and Piper Capital Management Incorporated, a money management company with approximately $12.8 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Piper Jaffray Inc. is a member of the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. and other major stock exchanges. For more information about Piper Jaffray Companies, visit our Web site at http://www.piperjaffray.com/. CONTACT: Piper Jaffray Inc., Minneapolis Maria Verven, 612/342-6584 |
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