Robbie Stephens raises price target to 275!
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Thursday July 22, 12:26 pm Eastern Time
Company Press Release
SOURCE: BancBoston Robertson Stephens
BancBoston Robertson Stephens Reiterates Buy Rating
on EXDS - Category Gorilla Conquers the Virtual Bricks(TM) Jungle -
SAN FRANCISCO, July 22 /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 services analyst Rick Juarez today reiterated his Buy rating on Exodus
Communications, Inc. (Nasdaq: EXDS - news). The company, headquartered in Santa Clara, Calif., is a leading business-centric
provider of Internet systems and network-management solutions for companies seeking to outsource their mission-critical Internet
operations.
''We are reiterating our Buy rating on Exodus following the company's announcement of strong second-quarter 1999 earnings,'' said
Juarez. ''The company reported earnings-per-share of ($0.51), in-line with our estimates, and revenues of $42.5 million, topping
our estimate by 14 percent.
''We are raising our 1999 and 2000 revenue estimates to $215.9 million and $463.3 million from $165.1 million and $310 million,
respectively, to reflect growth in the installed-customer base,'' said Juarez.
''To reflect an increase in COGS and in stepped-up-operating expenses to expand its data-center capability, we are lowering our
earnings-per-share estimates for fiscal 1999 and fiscal 2000 to ($2.19) from ($1.91) and to ($0.68) from ($0.94),'' said Juarez.
''Exodus' strong-second-quarter 1999 results validate our thesis of 1) emphasizing the importance of CSPs offering
integrated-access, hosting and outsourced applications-services, and 2) the trusted-agent model, which facilitates the flow of
business-to-business commerce transactions,'' said Juarez. ''We are therefore establishing a 12-month price target of $275, based
on 25x fiscal 2000 revenues.''
Clients interested in receiving more information should contact their salesperson at 415-781-9700.
BancBoston Robertson Stephens is a leading international investment banking firm focused on growth companies. The firm's 55
equity and high yield research analysts cover more than 600 companies. Additional information is available upon request.
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