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Reiterating a rating and raising a price target is irrelevant for many shares in the data communications/Internet space. Reducing revenues and/or pushing out positive results matter much more. The reason is that the valuation measure is very much of an art and not a science. Analysts tend to use whatever measure will support whatever price target that they believe is "fair," as we do not have a P/E, P/EBITDA per share, or whatever, to use. For the traditionalist, the discounted cash flow model is most typical, not P/Revenue. And even the DCF is merely guessing. As stated, revenues estimates are coming down, not up. If one wanted to use P/Revs, trailing revenues are best as they are actual, historical numbers, not some guess by an analyst. That said, management's timing of this, as well as the manner of dissemination is suspicious. And momentum investors will not be pleased. However, Exodus' management has always been a bit fast and loose with its statements. |
