From WSJ:
Infoseek Rallies On Merrill Report; Other Internet Stks Up
NEW YORK (Dow Jones)--Shares of Infoseek Corp. (SEEK) rallied
23% on positive comments from Merrill Lynch & Co.
Merrill analyst Bruce Smith said the stock is significantly undervalued relative to its peers, a group the stock has underperformed over the past two months.
"We can find no fundamental reason for this (underperformance)," Smith
said. "As this disparity is recognized, we would expect Infoseek to
outperform the group."
In a research report, Smith said the company's fourth quarter looks strong, adding that there is potential upside to his revenue forecast of $11.2 million and estimate of a loss of 20 cents a share.
"The new management team is executing on all fronts and we expect
momentum to continue to build throughout 1998," Smith said. The analyst added that traffic growth at the provider of Internet navigation services has remained robust.
Smith maintained his intermediate-term accumulate and long-term buy rating on the stock, which was recently up 1 13/16, or 22.7%, at 9 13/16 on Nasdaq volume of 1.3 million shares, compared with average daily turnover of 722,700.
Les Wright, chief financial officer at the Santa Clara, Calif., concern, said the company has released no recent news, and said the Merrill report was likely behind the stock activity.
Shares of other Internet-related companies were also rallying, as were the broader stock averages. Excite Inc. (XCIT) gained 2, or 7.1%, to 30 1/4; PSINet Inc. (PSIX) added 15/16, or 20.8%, to 5 7/16; and Lycos Inc. (LCOS) improved 2 1/8, or 5.5%, to 40 1/2. By late afternoon, the
Nasdaq Composite Index has rallied more than 26 points to nearly 1564,
and the Dow Jones Industrial Average has climbed more than 127 to 7920.
- By Thomas Granahan; 201-938-5172 |
