Date: Thu, 18 Dec 1997 04:50:35 GMT Server: Apache/1.2.1 Last-Modified: Tue, 18 Nov 1997 16:10:53 GMT ETag: "66381-a1b-3471be0d" Content-Length: 2587 Accept-Ranges: bytes Connection: close Content-Type: text/html WESTPOINT STEVENS GETS INITIAL "BUY" RATING FROM SALOMON BROTHERS

WestPoint Stevens Home Fashions Corporate Highlights

Press Releases


WESTPOINT STEVENS GETS INITIAL "BUY" RATING FROM SALOMON BROTHERS

Dow Jones Online News, Thursday, October 30, 1997 at 13:08

NEW YORK -(Dow Jones)- Salomon Brothers Inc. analyst Brett Barakett said he initiated coverage of Westpoint Stevens Inc. with a "buy" rating on the stock.

The analyst estimates Westpoint Stevens (WPSN), which makes bed and bath products and accessories, will earn 74 cents a share in the fourth quarter. He also estimates that the company will earn $2.20 a share from continuing operations in 1997 and $2.73 from continuing operations in 1998.

Barakett said his 12-month price target on the stock is in the $47-to-$50 range.

Copyright (c) 1997 Dow Jones & Company, Inc.

WestPoint Stevens - The Consumer-Focused Company

WestPoint Stevens is the dominant supplier of bed linens and bath towels in the U.S. It is the believed low cost producer, has EBITDA margins twice those of its nearest competitor, and has consistently delivered on promises for four years.

WestPoint Stevens is incorrectly valued as a textile manufacturer. Instead, we believe that it should be more correctly valued as a vertically integrated consumer goods marketer. We project 20% EPS growth for the next five years, even though WestPoint shares trade at only 14.9 times our 1998 earnings and at a firm value/EBITDA of only 7.3 times our 1998 estimates.

WestPoint's cash flow continues to grow allowing for strong capital investments and stock buybacks to date, CAPEX is expected to greatly reduce in 1998 and 1999 resulting in even stronger cash generation.

Source: Salomon Brothers Inc.