Chatfield Dean & Co., Inc. Initiate Coverage on Yahoo! Inc
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Sept. 23, 1998-- Chatfield
Dean & Co., Inc. today initiated coverage on Yahoo! Inc. (NASDAQ NMS:YHOO)
with a short-term REDUCE rating and a long-term NEUTRAL rating.
"The recent run-up in Yahoo!'s stock is due to irrational exuberance.
With the stock now trading at a P/E'98 estimates of over 300X and a P/E'99
estimates of over 200X, the multiples are far beyond any reasonable earnings
growth expectations, and cannot continue indefinitely. The long-term
investment return for buyers of YHOO stock is extremely limited at current
prices, even with 100% annual EPS growth. However, this is a strong company,
in a high growth industry; therefore, if the market valuation becomes more
reasonable, we will change our rating." Research report to follow.
o Current Price: $112
o Rating: SHORT-TERM REDUCE, LONG-TERM NEUTRAL
o Risk Rating: Speculative
Analyst: Cheryl J. Bostater
CONTACT:
Chatfield Dean & Co. Inc., Greenwood Village
Cheryl J. Bostater, 303/740-0006 |
