Reiteration from Dain Rauscher Wessels after NETP presentation this week.
Thanks to "eurolover" at Yahoo.
Net Perceptions, Inc. (NASDAQ:NETP) September 13, 2000
Buy -Speculative; Price Target:$65.00
INTERNET INFRASTRUCTURE AND APPLICATIONS
Stephen H. Sigmond (612) 313-1223 ssigmond@dainrauscher.com
Vikram Kaura (612) 313-1235 vkaura@dainrauscher.com
NET PERCEPTIONS HIGHLIGHTS FROM DRW TECHNOLOGY CONFERENCE 2000
Net Perceptions, Inc. presented at Dain Rauscher Wessels’ Technology Conference yesterday (September 12) in Scottsdale, Arizona.
We believe the quarter is progressing well with several new products expected toward the end of 2000.
We reiterate our Buy-Speculative rating on NETP shares with a 12-month price target of $65.
Price: $13.62
52-Wk
Range: $66 -$10
Tr. 12 ROE: NE
3 Yr EPS Gr.:50.0%
Shares Out: 26.10 million
Book Value: NE
Market Cap: $355.48 million
Fiscal Yr Prev EPS P/E
Dec/1999A ($0.56) NM
Dec/2000E ($0.52) NM
Dec/2001E $0.10 NM
2000 Q3 ($0.13)
Excluding noncash charges
Fiscal Yr Prev Revenue* MC/Rev
Dec/1999A $15.13 23.5x
Dec/2000E $51.40 6.9x
Dec/2001E $85.10 4.2x
Revenue in millions.
MC/Rev = Market Cap/Revenue
Steven Snyder (president and CEO) and Tom Donnelly (CFO) presented yesterday, September 12, at our technology conference. Following are
the highlights:
We believe the quarter is progressing well, both on customer acquisition and product development fronts.
A notable recent win includes Kmart (a seven figure deal), which is expected to deploy Net Perceptions, Inc.’s advertising and
merchandising analytic solutions. We believe this win further affirms Net Perceptions’ strong position in retail markets.
We believe the company has several pilot programs in progress in the Knowledge Management area.
We believe two new products, the Personalization Manager (Commerce Solutions) and Heads-up Channel (Network Solutions) are on track to ship in the December quarter.
We also believe the company is on track to grow its direct quota-reps from 39 at the end of June quarter to 57 by year end.
Stock Opinion:
At its current price of $13.62, we believe NETP stock is trading at a compelling multiple of 4.2x estimated 2001 revenues, a significant discount
to its peer group. We reiterate our 12-month price target of $65 on NETP shares with a Buy-Speculative rating. Our price target is based on a 20x multiple of estimated 2001 revenues, a valuation that is in line with comparable Internet software companies. |
