[RESEARCH ALERT-Global Telesystems started with buy by Arnhold and Bleichroeder]
NEW YORK, Sept 14 (Reuters) - Arnhold and Bleichroeder Inc. said on Tuesday it started coverage of European telecommunications company Global TeleSystems Group Inc. with a buy rating a day after a steep slide in its stock price.
-- Analyst Richard Sloane said the recent weakness had created a buying opportunity in a research note. He set a price target of $37 a share.
-- In early Friday trading, shares had recovered some of the losses, rising 2-9/16 to 23-13/16 in heavy trade.
-- On Thursday, the stock fell about 20 percent, the most active on the Nasdaq, sliding 5-7/16 to close at 21-1/4. A Bear Stearns analyst on Thursday lowered revenue forecasts for the company after speaking with company management.
-- Shares of Global TeleSystems are currently down about 50 percent from their all-time intraday high of $45.85, hit nearly three months ago, on June 22, 1999.
-- "We do not believe that these price falls are reflective of the company's future revenues and cash flows, nor its asset value," Sloane said in a report.
-- He said several near-term catalysts could give the stock a boost, citing an end-of-September analyst meeting, a major strategic announcement scheduled for October, and the scheduled initial public offering of Golden Telecom, affiliated Russian assets. |
