SAN FRANCISCO--(BUSINESS WIRE)--Oct. 5, 1999--Robertson Stephens Senior eCommerce Analyst Rick Juarez today reiterated his Buy rating on PSINet, Inc. (NASDAQ:PSIX). The company, headquartered in Herndon, Va., is a leading business-centric provider of facilities based Internet access and electronic commerce products.
"We are reiterating our Buy rating on PSINet in the wake of recent weakness in the stock, which has created, in our view, an attractive entry opportunity in the leader of value-added IP-centric access," said Juarez. "We believe that the courtship of Sprint by MCI Worldcom and BellSouth is compelling evidence of the importance of the robust broadband network and hosting infrastructure. We view PSINet's assets as inherently more valuable than those of a long distance carrier, driven by its higher margin eCommerce, web hosting and IP-centric offerings."
"In our view, 3Q99 closed on track with $1 to $2 million in revenue upside for the quarter. Given PSI's recent investments in infrastructure, we expect to see new domestic bookings from its hosting business to exceed 20 percent," said Juarez. "We believe the company's accelerated investments in its global network and hosting infrastructure are prudent and are providing this facilities-based provider with significant economies of scale - its New York center is expected to open in 4Q99."
"In our view, these investments along with the TNI acquisition, demonstrate PSI's ability to (1) attractively acquire, (2) successfully integrate and (3) successfully managed its portfolio of acquisitions," said Juarez.
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