Robertson Stephens Raises Estimates, Reiterates Buy Rating on PSIX
BusinessWire, Tuesday, October 26, 1999 at 15:21
SAN FRANCISCO--(BUSINESS WIRE)--Oct. 26, 1999--Robertson Stephens
Senior eCommerce Analyst Rick Juarez today reiterated his Buy rating
on PSINet, Inc. (NASDAQ:PSIX). The company, headquartered in Herndon,
Va., is a leading business-centric provider of facilities based
Internet access and electronic commerce products.
"We are reiterating our Buy rating and $75 price target on PSINet
following the company's announcement of solid third-quarter 1999
financial results," said Juarez. "The company reported revenues $140.6
million and earnings-per-share of ($1.35), beating our estimates of
$135 million and ($1.41), respectively," said Juarez.
"In our view, PSINet's continued positive results:
1. validate the company's global infrastructure build out
strategy,
2. signal the growing and largely untapped demand for
integrated, global access, hosting and application services
and
3. demonstrate the company's ability to consistently deliver on
street expectations,"
said Juarez.
"We believe there are two themes emerging among the dominant
Virtual Brick providers:
1. the size of the global footprint matters and
2. ownership and thereby control of the underlying IP network
will enable facilities based carrier to offer significantly
better quality and SLAs - especially internationally,"
said Juarez.
"In addition, the company announced three important new
initiatives including the opening of 21 new center by the close of
2000 with 1.5 million square feet, continued acquisitions, e.g.
Transaction Network Services, Inc., and the purchase of additional
network capacity from Loral - satellite and Flag," said Juarez.
"We are raising our fiscal 1999 and fiscal 2000
earnings-per-share estimates from ($5.05) to ($4.98) and from ($5.88)
to ($5.84), reflecting the improved third-quarter results," said
Juarez. "In our view, PSI represents a compelling buying opportunity
and a savvy way for investors to capitalize on the global expansion in
eCommerce services."
Clients interested in receiving more information should contact
their salesperson at (415) 781-9700.
BancBoston Robertson Stephens Inc. ("Robertson Stephens") is the
leading full-service investment bank focused exclusively on growth
companies. To date in 1999, the firm has completed over 130 offerings,
raising more than $24 billion in capital for clients. The firm's 47
research analysts cover nearly 700 companies. Founded in 1978,
Robertson Stephens is the section 20 subsidiary of Fleet Boston
Corporation (NYSE:FLT) and is a member of the NASD and all major
exchanges. Together, Robertson Stephens, BancBoston Robertson Stephens
International Ltd., and Robertson Stephens Evergreen Securities Ltd.
employ over 1,000 employees worldwide with offices in Boston, San
Francisco, New York, Menlo Park, Chicago, London, and Tel Aviv. For
more information about the firm, please visit our Web site at
www.rsco.com.
The foregoing synopses are qualified in their entirety by the
more detailed information contained in the full research reports,
including the discussion of certain risks associated with an
investment in the above-mentioned securities contained in "Investment
Risks."
The information contained herein is not a complete analysis of
every material fact respecting any company, industry or security.
Although opinions and estimates expressed herein reflect the current
judgment of BancBoston Robertson Stephens Inc., the information upon
which such opinions and estimates are based is not necessarily updated
on a regular basis; when it is, the date of the change in estimate
will be noted. In addition, opinions and estimates are subject to
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or other services for some companies described herein and may
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CONTACT: Robertson Stephens, San Francisco
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