Shares of UTStarcom Inc. (Nasdaq: UTSI) rose more than 4 percent in trading today on revised 2004 revenue estimates from Pacific Growth Equities Inc.

A report, issued today by analyst Joe Noel, raised 2004 revenue estimates for UTStarcom because of the company's entry into larger Chinese cities, as well as other markets outside of China.

"For example, we see significant opportunities for revenue expansion, in India, Latin America, Taiwan, Vietnam, the Caribbean, Eastern Europe and within a couple of areas in Africa," Noel writes.

"The current consensus revenue estimate for 2004 stands at $2.1 billion ($400 million increase), which is a 23 percent year-over-year increase. We believe enough visibility exists to conclude that current estimates are too conservative," Noel adds.

Because of UTStarcom's continued success, its attempts to add more products, and its recent expansion into new markets, Noel says he's raising his UTStarcom revenue estimate $2.5 billion for 2004, a 43 percent year-over–year jump.

Noel writes that he expects 66 percent of UTStarcom's revenues to come from China and 24 percent of its total sales to be from wireline equipment, such as DSLAMs, DLCs, and optical transport gear.

He even goes so far as to say the stock is more valuable than the market thinks right now. Noel writes, "We believe the stock should trade at... a price of $45."

UTStarcom shares rose $1.55 (4.74%) to $34.25 in trading on Thursday. Representatives from UTStarcom did not immediately return calls on Thursday afternoon.

— Phil Harvey, Senior Editor, Light Reading