ICON CMT CORP (ICMT: $11.75 )+ 03/19/98 Coverage Initiated With A Buy
Rating ÿÿEarnings Per Share Old New P/E Ratios ÿÿ(FY:Dec.) 1999E$$0.00ÿÿ
1998E ÿ(1.12)ÿÿ1997Eÿ(1.20)ÿRating: BUY Change: None 12-Mo. Target: $20
We are initiating coverage of Icon CMT Corp. (ICMT+) with a Buy rating.
The company offers a complete range of Internet services including
access, Web application design and management, and consulting. Icon went
public on February 12th offering 3.85 million shares at $10.00. Since
the offering the stock has shown positive movement related to
announcements of internal and external growth initiatives. However, the
shares have seriously lagged those of Internet stocks which have raged
for the past year. In particular, USWeb (USWB+*), a comparable provider
of Web design services, has seen a recent surge in its stock. We believe
Icon represents an extremely high quality Internet services company
based on our extensive conversations with industry experts, competitors,
and clients, and Icon is one of only a handful of companies that can
provide soup-to-nuts services on the Internet. Most players are access
only, Web design only, consulting only, etc., but Icon can truly be a
one-stop shop to get a customer up and running on the Web. With Internet
subscriber growth running 30-40%, it would be tempting to call that the
growth rate for Icon, but corporations are just beginning to use the
Internet for serious applications so usage is far outpacing subscriber
growth. In fact, most estimates have the Internet traffic doubling every
six months and Icon is poised to catch coins as they flow by. ÿ For
Definitions of Ratings Click Here.
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