BancBoston Robertson Stephens Initiates Coverage of the B2B eCommerce Sector, With Buy Ratings on CMDX, ICGE, VERT
SAN FRANCISCO, Sep 29, 1999 (BUSINESS WIRE) -- BancBoston Robertson
Stephens managing director and senior business-to-business eCommerce
analyst Eric B. Upin today initiated coverage of the
business-to-business (B2B) eCommerce sector with Buy ratings on Chemdex
Corp. (NASDAQ: CMDX), Internet Capital Group (NASDAQ: ICGE) and
VerticalNet (NASDAQ: VERT).
Chemdex provides secure-electronic marketplaces for the life sciences
and specialty medical supply industries, enabling enterprises,
researchers and suppliers to buy and sell products.
Internet Capital Group invests in and acts as operating manager of a
collaborative network of B2B eCommerce companies. VerticalNet operates
a portfolio of highly focused, vertical trade communities on the
Internet.
"In our view, we are approaching an inflection point, where Internet
infrastructure and models, IT systems, and broad market factors are
setting the stage for the rapid expansion of B2B eCommerce," said Upin.
"Business-to-business trade vastly exceeds consumer transactions,
accounting for 85 percent of total commerce in the U.S. Assuming 10
percent of B2B transactions move online by 2003, the implied eCommerce
volume is $1.7 trillion. Globally, that figure could more than double,
resulting in a profound investment opportunity."
"We are initiating coverage of the B2B eCommerce sector with Buy
ratings on Chemdex, Internet Capital Group and VerticalNet," said Upin.
"We believe the winners in this space will be new companies, as the B2B
environment is very different and much more complex than
business-to-consumer."
"We believe Chemdex is a major player and the first B2B eCommerce
provider specifically targeting the $15-billion life-sciences-products
marketplace," said Upin. "Additionally, the company announced its
intention to expand into the healthcare specialty-products arena, a $68
billion market opportunity, through the acquisition of Promedix, which
is expected to close by the end of the year."
"We expect Internet Capital Group will become the GE of the Internet,
operating businesses that are market-share leaders in their respective
industries," said Upin. "We believe that the stock will trade at a
significant premium to its net asset value, based on the rapid growth
and penetration of eCommerce among the B2B community."
"In our view, VerticalNet continues to build strong vertical
communities -- laying the foundation for eCommerce transactions," said
Upin. "We believe this strategy represents a critical element of B2B
success -- offering quality content to grow loyal communities within
specific industries, and converting these audiences to commerce
customers." |
