Notice the importance that the two analysts give to the recently expanded partnership between Siebel and IBM.
--Mike Buckley
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PALO ALTO--(BUSINESS WIRE)--Dec. 1, 1999--Credit Suisse First Boston Technology Group analysts George Gilbert and Brent Thill initiated coverage today of Siebel Systems (SEBL) with a Strong Buy rating. Gilbert and Thill have set their EPS estimates for FY99 and FY00 at $0.50 and $0.64, respectively.
SEBL has the opportunity to lead the traditional customer relationship management (CRM) market beyond coordinating cross-channel customer contacts, believe Gilbert and Thill. CRM is becoming a much larger market that manages the process of acquiring, cultivating, and retaining customers.
"For the near and intermediate term, SEBL's growth is distribution capacity-constrained, but a massive commitment of resources on IBM's part may add more than 1/3 to that capacity starting next year," wrote Gilbert and Thill. "Oracle may emerge as a strong entrant, but it's difficult to envision a scenario where it is more than a strong No. 2."
With expanding share in customer-facing applications, most of its rivals trading at 30-100X CY00 revenue vs. SEBL at 15X, and accelerating internal expansion as a leading indicator, Gilbert and Thill see significant potential upside to expectations and valuation. Given current market volatility, however, they are not using a price target.
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