Both Salomon Brothers Inc and more importantly Goldman Sachs & Co have moved Sun Microsystems Inc shares off their recommended buy lists: basically Goldman thinks Microsoft Corp’s Windows NT and Intel Corp’s Pentium are going to be more than Sun can handle, hurting its ability to improve earnings on a sustained basis over the next year or so and impeding its gains in market share; Goldman believes Sun’s financial model may need to change more quickly than the company can realise; the long-term judgment is based on Goldman’s view of Sun’s business as 80% to 85% client side where it thinks Windows, especially NT, will dominate in client-server systems, even where high-performance client products are needed.
