Robertson Stephens Reiterates Buy Rating on CNCX
SAN FRANCISCO--(BUSINESS WIRE)--Dec. 13, 1999--Robertson Stephens Senior eCommerce Analyst Richard A. Juarez today reiterated his Buy rating on Concentric Network Corporation (NASDAQ:CNCX - news). The company, headquartered in Cupertino, Calif., is a leading integrated provider of Internet access and hosting solutions.
''We are reiterating our Buy rating on Concentric, after the company announced its decision to file for CLEC status,'' said Juarez. ''In our view, this decision affirms our thesis that effective network management is essential to providing turnkey integrated access, hosting, and applications services, as well as managing a vital component of the Application Service Provider (ASP) value chain.''
''We believe this CLEC status will enable Concentric to better control its network costs, extend its geographic presence, resell ILEC services and purchase ILEC transport services at more attractive wholesale rates,'' said Juarez. ''In addition, we feel the move augments Concentric's existing relationships with other DSL providers, and should allow the company to provision DSL to the end user at a faster rate.''
''In our view, Concentric's hosting and eCommerce platform business continues to witness strong growth, especially with the surpassing of the 250,000 domain registration milestone,'' said Juarez. ''Overall, the quarter continues to track well, and could expect upside of $500K or better for the fourth quarter of 1999. We expect to see further cost advantages materialize in fiscal 2001, as benefits of the CLEC status are realized.''
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 a section 20 subsidiary of Fleet Boston Corporation (NYSE: FLT - news) and 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.'' |
