Another Analyst discovers RRRR and everything we already knew over a year ago!!
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Rare Medium Group, Inc.Deutsche Banc Alex. Brown's D'AnnolfoInitiates Research Coverage
NEW YORK, March 28 /PRNewswire/ -- Deutsche Banc Alex. Brown's Mark D'Annolfo yesterday initiated research coverage of Rare Medium Group, Inc. (Nasdaq: RRRR - 58 1/16) with a BUY investment rating on the shares. Rare Medium Group is a new model eServices company that is both an interactive integrator and an Internet-focused, venture investment and incubator business.
According to D'Annolfo, his positive opinion on Rare Medium Group is based on three key investment themes.
1. The IT services market represents a large opportunity where demand forinteractive integration services is on the cusp of the next wave of investment. Rare's services business is exhibiting momentum across the board and 1Q00 is expected to be strong. Additionally, D'Annolfo
believes the company has a solid management team, strong financial and operational metrics and a desirable corporate culture.
2. Rare's private equity portfolio serves as an excellent mechanism to create shareholder value while also serving to attract and retain employees. Likewise, management of the venture/incubator business is impressive due to its mix of entrepreneurial talent and venture capital expertise.
3. Synergies between the services business and the private equity portfolio include providing lead generation in both directions across the two business units and the strengthening of customer relationships. Rare's relationships with the venture capital community frequently bring in services clients who are looking forcapital. At the same time, Rare adds value to its portfolio companies
by providing end-to-end e-business solutions.
D'Annolfo arrives at a 12-month price target of $83 per share for Rare Medium Group by applying a 12-month forward multiple of 20x his 2001 revenue projection for the services business and a 2.5x premium to NAV to the private equity portfolio to account for the future potential of the business.
Additional Information Available Upon Request
Deutsche Banc Alex. Brown identifies the U.S. investment banking activities of DB Alex. Brown LLC and Deutsche Bank Securities Inc., which are indirect subsidiaries of Deutsche Bank AG. With over $869 billion in assets as of September 30, 1999 and approximately 90,000 employees, Deutsche Bank offers its clients unparalleled financial services throughout the world. It ranks among the leaders in asset management, capital markets, corporate finance, custody, cash management and private banking. Deutsche Bank is divided into five major business units: Global Corporates and Institutions, Global Technology and Services, Asset Management, Corporates and Real Estates and private and Retail Banking.
Deutsche Bank Securities Inc. maintains a net primary market in the common stock of Rare Medium Group, Inc.
Rare Medium Group, Inc. stock is optionable.
Rare Medium Group, Inc. has a convertible issue outstanding.
Information herein is believed to be reliable and has been obtained from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Opinions, estimates, and projections constitute our judgement and are subject to change without notice. This publication is provided to you for information purposes only and is not intended as an offer or solicitation for the sale of any financial instrument. Deutsche Bank Securities Inc., DB Alex. Brown LLC., and their affiliates worldwide, may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as advisor or lender to such issuer. Transaction should be executed through a Deutsche Bank entity in the client's home jurisdiction unless otherwise permitted by law. Deutsche Bank Securities Inc., and DB Alex. Brown LLC., are members of NYSE and NASD. Copyright 2000 Deutsche Bank Securities Inc., and DB Alex. Brown LLC. In the U.S. this report may be distributed either by Deutsche Bank Securities Inc., or DB Alex. Brown LLC. Interested parties are advised to contact the U.S. entity they currently deal with, or the U.S. entity that has distributed this report to them.
SOURCE Deutsche Banc Alex. Brown
CO: Deutsche Banc Alex. Brown; Rare Medium Group, Inc.
ST: New York
IN: FIN
SU: PDT
03/28/2000 14:08 EST prnewswire.com |
