BancBoston Robertson Stephens Raises Estimates, Reiterates Buy Rating on PSIX
PR Newswire - July 12, 1999 11:23
Company Continues to Build Global Momentum
SAN FRANCISCO, July 12 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior eCommerce infrastructure analyst Rick Juarez today raised estimates and reiterated his Buy rating PSINet, Inc. (Nasdaq: PSIX). The company, headquartered in Herndon, Va., is a leading provider of facilities-based-Internet access and electronic-commerce products.
"We are raising our earnings-per-share estimates on PSI for fiscal 1999 and fiscal 2000 from a loss of ($4.86) to a loss of ($4.28) and from a loss of ($4.19) to a loss of ($3.80), respectively, to reflect the company's recent equity and debt offerings," said Juarez. "In addition, we have revised our revenue estimates for fiscal 1999 and fiscal 2000 from $479.9 million to $488.9 million and from $759.5 million to $774.9 million, respectively, to reflect the company's recent acquisitions.
"PSI's recent announcement that it intends to offer $400 million in debt further augments its war-chest, which we believe the company will deploy to accelerate its prudent and aggressive strategy of network and infrastructure expansion," said Juarez.
"PSI continues to expand its global communications capability. During second-quarter 1999, the company acquired at least eight ISPs, and we expect continued acquisitions in the near term," said Juarez. "We believe the company will move aggressively to expand its hosting capability beyond its current footprint of Virginia, Switzerland and Ontario, Canada. In addition, we expect that PSI will open data centers in New York, Los Angeles, London, Berlin and Paris over the next eighteen months."
"We have established a 12-month price target of $75, based on 6 times our fiscal 2000 revenues and using approximately 62 million shares outstanding," said Juarez.
Clients interested in receiving more information should contact their salesperson at 415-781-9700.
BancBoston Robertson Stephens, the section 20 subsidiary of BankBoston (NYSE: BKB), is a leading international investment bank focused on growth companies in the technology, life sciences and healthcare, information and business services, retail and consumer products, real estate, media, telecommunications, broadcasting, and gaming and lodging sectors. The firm's 55 equity and high yield research analysts cover more than 600 companies. Since its founding in 1978, BancBoston Robertson Stephens has raised over $52 billion in initial public offerings, follow-ons and convertible offerings. The firm has also assisted in over 400 mergers and acquisitions transactions valued at more than $77 billion. BancBoston Robertson Stephens began its high yield securities business in February 1997 and since that time has completed 69 transactions, including 15 lead transactions, raising more than $12.6 billion. BancBoston Robertson Stephens has offices in San Francisco, New York, Menlo Park, Boston, Chicago, London and Tel Aviv.
The following synopsis is qualified in its entirety by the more detailed information contained in the full research report, including the discussion of certain risks associated with an investment in this security contained in "Investment Risks."
The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of BancBoston Robertson Stephens, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." BancBoston Robertson Stephens from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this Report and the opinions contained herein are based on sources believed to be reliable, BancBoston Robertson Stephens has not independently verified the facts, assumptions and estimates contained in this Report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. BancBoston Robertson Stephens, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. BancBoston Robertson Stephens International Ltd. is regulated by the Securities and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of BankBoston N.A., and are subject to investment risk, including possible loss of any principal amount invested.
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