Earthlink: più scende meglio è - gzibordi ¶
By: GZ on Venerdì 18 Gennaio 2002 13:35
Goldman Sachs ha rivisto in basso le stime e da sola lo ha affondato, ma può essere un caso in cui approfitti del panico anche perchè se un legge quello che ha detto Goldman resta un buy.
Occorre però che il mercato digerisca il downgrade e quindi è un caso in cui più scende meglio è per comprarlo e non viceversa.
In dicembre il CEO aveva venduto 100 mila azioni e aveva creato il panico e questi sono i due fatti che lo hanno fatto cedere, ma il resto della storia che avevo
descritto resta valido.
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Goldman Sachs analyst Anthony Noto said Wednesday he cut his 2002 cash flow estimates on the Internet service provider EarthLink Inc. (ELNK) and cut his price target to $17 from $19, citing increased competition and slowing industry growth.
Shares of EarthLink fell 13 percent, or $1.57, to $10.4 in early trade on the Nasdaq.
In a research note, Noto said he cut his 2002 earnings before interest, taxes, depreciation and amortization (EBITDA) -- or cash flow -- target to $80 million from $100 million.
He believes the company will have to spend more on marketing to build its subscriber base to contend with increased marketing spending by its rivals and slowing industry growth.
However, Noto said EarthLink's risk-reward profile remains the most compelling in the new media group and valuation remains attractive.
Still, Noto noted that rival AOL Time Warner Inc.'s (AOL) Internet unit expected subscriber growth of 1.1 million new U.S. members in its latest quarter and Microsoft Corp.'s (MSFT) MSN's additional 750,000 subscribers appears to be stronger than the growth EarthLink is seeing.
He expects EarthLink's total subscribers to be about flat to down sequentially, implying a net loss of 50,000 to 100,000 narrowband subscribers offset by growth of 65,000 high-speed subscribers.-
``EarthLink's recent subscription price increase and lower anticipated marketing spending may leave them vulnerable to market share losses in the fourth quarter,'' Noto said.
REUTERS
