EMusic.com Started By Volpe Brown Whelan, Terayon Upgraded (EMUS)
(NewsTraders.com)--EMusic.com (EMUS) may find itself very much in tune with the investment community, as Volpe Brown Whelan Co. analyst Derek Brown initiated coverage on the stock today, lending it a "strong buy" label due to the brokerage firm's belief that it allows investors to "participate in a nascent industry with explosive growth potential."
Saying that it has "first-mover status" and a "unique" strategy, Brown separated EMusic from its competitors by virtue of its exclusive digital download licenses to over 300,000 titles from over 140 record labels, representing 1,500 artists.
The analyst also pointed out that Forrester Research has predicted a $1.1 billion market for downloadable music by 2003.
In a separate move, analyst Tim Savageaux upgraded shares of Terayon Communication Systems (TERN) to "strong buy" from "buy" on the strength of its core cable modem business which drives its historically strong earnings, as well as its push to build itself as a broadband access supplier through acquisitions.
Savageaux said, "We believe Terayon is a must-own for investors seeking broad-based exposure to global growth in cable modem, cable telephone and digital video markets, leveraging a strong core technology expertise in S-CDMA."
Shares of Redwood City, Calif.-based Emusic.com recently traded unchanged at $15.81, while Santa Clara, Calif-headquartered Terayon gained $1.06, climbing to $43.00.
Copyright 1999 NewsTraders Inc. All Rights Reserved 11:00 Wednesday, October 13, 1999 |
