[B] ANALYST VIEW: Salomon ups Ameritrade rating, shr price target
--Salomon Smith Barney ups Ameritrade to buy from neutral
--Salomon Smith Barney ups Ameritrade shr target to $30 vs $27
--Salomon cuts Ameritrade Q2 loss est by 6c shr to 12c loss
--Salomon ups DLJdirect Q1 EPS est by 1c to 2c
--Salomon ups DLJdirect 2000 EPS est by 5c to 20c
--Salomon cuts E*Trade 2000 loss est by 5c to 46c shr loss
By Bridge News
New York--Mar 7--Salomon Smith Barney on Tuesday upgraded Ameritrade Holding
Corp. to buy from neutral and raised the share price target to $30 from $27. The
firm also raised earnings estimates for Ameritrade, E*Trade Group and DLJdirect.
"We are increasing our 2Q00 net revenue est to $141 mil (up 27% seq) from
$127 mil, and reducing our 2Q00 net loss est to ($0.06) from ($0.12) per share.
Introducing FY01 net rev and EPS ests of $774 mil and $0.55/share," the firm's
research report said about Ameritrade.
"We expect the co. to beat even recently raised expectations. Our new
estimates place us at the high end of the range, and well above consensus."
"Robust market conditions should benefit AMTD on a disproportionate basis
relative to peers, given its leverage to transaction volume."
"We believe that turning the corner on profitability (despite heavy ad
spending) should be a catalyst for the shares, as AMTD's "narrow and deep"
business model starts to show signs of scale and leverage."
Of DLJdirect Salomon analysts said, "We are raising our 1Q00 and full-year
revenue estimates to $85 mil (from $80 mil) and $366 mil (from $352 mil),
respectively. We are raising our 1Q00 EPS est. by a penny to $0.02, and our 2000
est to $0.20 from $0.15."
"We are establishing 2001 rev and EPS estimates of $490 mil (up 34%) and
$0.25 (up 26%), respectively."
The analysts also raised estimates for E*Trade.
"We are raising our fiscal 2Q00 and FY00 rev estimates to $445 mil (from
$418 mil) and $1.262 bil (from $1.188 bil), respectively. Our FY00 net loss est
is now ($0.46) from ($0.51). No change in 2Q00 est. as marketing spending should
offset incremental revs and gross margin improvement."
"Establishing FY01 net revenue and loss estimates of $1.73 bil (up 37%) and
($0.10) per share, respectively. We expect break-even in 3Q01." End
* * *
Bridge News, Tel: (212) 372-7569
Send comments to: equity@bridge.com
[symbols:US;AMTD:US;DIR:US;EGRP]
Mar-07-2000 11:40 GMT
Symbols:
US;AMTD US;DIR US;EGRP
Source [B] BridgeNews Global Markets
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