Another old analyst call(Jan16,02)................analyst Cary Robinson, of U.S. Bancorp Piper Jaffray, doesn't see WorldCom selling in the next 12 months. "Right now, WorldCom is the best positioned of all players in the telecom sector," he said. "They have a backbone that connects them to every country in the world and a metro network that has the largest number of areas in Europe."
Any purchase offer below $20 a share would be a bad deal for the company, said Robinson, who expects WorldCom's revenue to grow by 11 percent, year over year, until 2005. SBC is growing at 1.5 percent annually while Verizon has said it expects revenues to grow by 7 percent over the next five years.
WorldCom, which is trading at around $13 a share, should wait until the market recognizes its value, analysts said. "If you are [WorldCom CEO] Bernie Ebbers and have 11 percent growth, why would you sell at this level?" Robinson said. |
