VerticalNet Gets Praise From
Analysts
By Joe Bousquin
Staff Reporter
8/24/00 1:43 PM ET
Kind words from two brokerage firms were helping
VerticalNet (VERT:Nasdaq - news) Thursday.
The stock was up nearly 2%, or 13/16, to 48 11/16 after
Credit Suisse First Boston and Robinson-Humphrey
released notes with positive tones about the
business-to-business company.
At Credit Suisse, analyst Chris Vroom said the
company's offline computer chip trading exchange,
NECX, was exhibiting surprisingly robust business.
"We and others had expected a significant slowdown
owing to the cyclicality of the semiconductor industry
bringing an end to the heavy supply/demand imbalance,"
he wrote. "This has not happened, thus increasing the
potential for upside surprise on the September quarterly
results." He reiterated his strong buy rating on the
stock. (His firm has performed underwriting for the
company.)
NECX accounted for 54% of the company's revenue in
the last quarter. Some investors have questioned
whether VerticalNet is a true B2B e-commerce stock
because of its dependence on NECX, which is set up as
an offline brokerage and clearinghouse for computer
chips. (TheStreet.com wrote an earlier story about this
issue.)
Still, that didn't stop Robinson-Humphrey's Frank
Gristina from naming the stock his "top pick in B2B
marketplace for the rest of 2000." He also cited the
company's exchange business. He rates the stock a
buy. (His firm hasn't done underwriting for Vertical.)
Meanwhile, at Merrill Lynch, analyst Ed McCabe
issued a generally positive note on FreeMarkets
(FMKT:Nasdaq - news). After being off slightly at the
open, FreeMarkets was recently up 1 1/8, or 2%, at 55
5/8.
McCabe wrote, "Although we are not expecting a
blowout of the magnitude of last quarter, we are
comfortable that there is meaningful upside to our Q3
estimates of $22.9 million in revenue and [a loss] of 42
[cents a share] in cash EPS."
He also noted that the insider-trading window, which
allows company insiders to sell stock, closes at this
week's end, which could take pressure off the stock. He
rates the stock a buy. (His firm hasn't done underwriting
for the company.) |
