Bear Upgrades Plantronics On Financial Woes At Rival GN Netcom

Plantronics (PLT) shares were higher Thursday after Bear Stearns analyst Ted Chung raised his rating on the stock to Outperform from Peer Perform. In a research note, Chung writes that he expects “continued pricing stability” due to the widening losses as its primary competitor in the headset market, GN Netcom, a company listed on the Copenhagen Stock Exchange which sells under the Jabra brand.

“While potential for aggressive pricing remains, we believe that the widening losses at GN Netcom coupled with delay in GN’s shift to outsourced manufacturing could lead to continued stability in competitive dynamics in PLT’s core enterprise headset business,” he writes. “In addition, we see more stable environment in mobile headsets as inventory issues at a major vendor have largely been resolved.”

Chung raised his GAAP EPS estimate for the March 2008 fiscal year to $1.46 a share from $1.42; for next year he goes to $1.86 from $1.76; and for FY 2010 he’s now at $2.14, up from $2.04.

PLT 1-yr chart: