BancBoston Robertson Stephens Reiterates Buy Rating on XMCM
BusinessWire, Monday, September 20, 1999 at 10:29
SAN FRANCISCO--(BUSINESS WIRE)--Sept. 20, 1999--BancBoston
Robertson Stephens eMarketing analyst Lowell J. Singer reiterated his
Buy rating on Xoom.com (NASDAQ:XMCM).
Xoom.com, headquartered in San Francisco, Calif., is a Web direct
marketer.
"We are reiterating our Buy rating on Xoom.com," said Singer. "We
believe Xoom.com is undervalued relative to the opportunities created
by the upcoming NBCi merger and Value Vision TV alliance."
"In our view, NBCi's business model should mirror Xoom's
successful strategy of acquiring members with a wide array of free
services and converting them into customers," said Singer. "We believe
NBCi will announce further alliances that will help to accelerate both
membership growth and eCommerce revenue growth."
"We believe that NBCi's alliance with Value Vision Television,
which will change its name to Snap TV, will increase the reach of the
Snap brand name," said Singer. "In addition, we believe that the
access to Value Vision's 1.5 million customers will enhance NBCi's
eCommerce opportunities."
"We believe that NBCi can grow into a substantial valuation with
proper execution. On a pro forma market cap/unique users basis, NBCi
would be valued at an approximate 27 percent discount to Lycos and 90
percent discount to Yahoo," said Singer. "We believe Xoom's stock
remains the only way for investors to purchase NBCi today."
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