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E-Tek Dynamics makes some noise

Chipmaker E-Tek Dynamics Inc. (Nasdaq: ETEK) shot up 3, or 10 percent, to 34 Thursday after Soundview Technology Group upgraded the stock from a "buy" to "strong buy" recommendation.

E-Tek, which makes complex chips for fiber-optic networks, is now rated either a "buy" or "strong buy" by nine of the 11 analysts following it.

Last quarter, it earned $8.6 million, or 14 cents a share, on sales of $49.4 million.

First Call consensus expects it to pocket 14 cents a share in its fourth quarter and 48 cents a share in the fiscal year.

Aftering making a dazzling debut in its initial public offering back in December, the stock quickly slumped to an all-time low of 19 7/16.

But by mid-May, its shares had surged to a high of 51 3/16.

E-Tek, along with other semiconductor companies, stands to benefit from a turnaround in the worldwide semiconductor industry this year. Most analysts are predicting sales growth of between 12 percent to 17 percent in 1999.