U.S. Bancorp Piper Jaffray Initiates Coverage of IACT and MSTR With Buy Ratings, and Transfers Coverage of KANA and NTGX
- Rapid Growth in eCustomer Relationship Management Software Industry -
MINNEAPOLIS--(BUSINESS WIRE)--Sept. 11, 2000-- U.S. Bancorp Piper Jaffray Vice President and Senior Research Analyst Sarah Bernstein, a 2000 Wall Street Journal All-Star Analyst, today initiated coverage Interact Commerce Corp. (Nasdaq:IACT--$10 1/2, (a,c)) with a Buy rating and a 12-month price target of $20, based on 2.1 times estimated fiscal year 2001 revenue of $187 million; and, MicroStrategy, Inc. (Nasdaq:MSTR--$33 1/4, (a)) with a Buy rating and a 12-month price target of $60, based on 15.5 times estimated fiscal year 2001 revenue of $309 million. Bernstein also assumed coverage of Kana Communications (Nasdaq:KANA--$34 3/8, (a)) with a Strong Buy rating and a 12-month price target of $60, based on 24.4 times estimated fiscal 2001 revenue of $210 million; and NetGenesis Corporation (Nasdaq:NTGX--$8 5/16, (a,c)) with a Buy rating and a 12-month price target of $20, based on 8.7 times estimated fiscal 2001 revenue of $46 million.
According to Internet Data Corporation (IDC), the total eCustomer Relationship Management market is expected to reach $17 billion by 2003, exhibiting a 49 percent compound annual growth rate, up from $2.2 billion in 1998. Each of these companies that Bernstein initiated coverage of today are key player in the eCRM market.
Interact Commerce Corporation provides interactive selling products for individuals, organizations and communities. ``We believe Interact is an early developer of an interactive selling solution, Interact.com, which allows sales representatives to use the Internet and receive dynamic content, eCommerce and community services as part of the interactive selling process,'' said Bernstein. ``In our view, Interact is an established player in the sales automation market, which according to IDC, is expected to grow at a compound annual growth rate of 25.4 percent from $1.3 billion in 1999 to $4.2 billion in 2004.''
MicroStrategy is a leading worldwide provider of intelligent e-business software that enables the transaction of one-to-one electronic business throughout the web, wireless and voice communications channels. ``In our view, Microstrategy's growth should rebound as the company leverages its best-of-breed eIntelligence technologies for web, wireless and voice and implements significant operational improvements,'' said Bernstein
Kana Communications is a leading provider of eCRM e-business with customers include many prominent Internet and Global 2000 companies such as E*Trade (a), eBay (a), the Gap (a), American Airlines, Sprint PCS, eToys, Ameritrade (a) and Kodak. ``In our view, Kana is an emerging leader in the rapidly growing eCRM markets,'' said Bernstein. ``We believe that there is significant potential upside to our estimates for Kana, as we currently project triple digit revenue growth through fiscal 2001.''
NetGenesis Corporation is a leading provider of e-customer intelligence solutions and eCRM analytics. The company's software and services help customers analyze, optimize and accelerate their online businesses. ``We believe NetGenesis has a solid- growing customer base and strong strategic and consulting partners,'' said Bernstein.
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