Merrill may get more bullish on Net
By Bambi Francisco, CBS MarketWatch
Last Update: 11:52 AM ET Feb 24, 1999
Internet Stocks
NEW YORK (CBS.MW) -- Merrill Lynch is about to get more bullish on Internet stocks, at least on Amazon.com.
As of Wednesday, Henry Blodget will be senior Internet analyst for the brokerage firm. Blodget is leaving CIBC Oppenheimer, where he rose to a level of notoriety in mid-December by making what seemed to be an outlandish $400 per share target on Amazon.com (AMZN).
Blodget's stunning price target was met. He replaces Jonathan Cohen, who left to join Wit Capital. See full story.
The two analysts couldn't be further apart on their views. At the same time Blodget issued his Amazon call, Cohen warned that the online bookseller would be hard pressed to generate meaningful profits.
When Cohen left Merrill on Feb. 3, his rating on Amazon.com was a short-term reduced and a long-term neutral with a price target of $50 on the stock.
"Merrill's getting a very credible analyst," says Randall Roth, Renaissance Capital analyst. "In some respect, he should have a more visible presence and more influence over the sector and his calls will take on that much more importance."
A Merrill spokesperson said details of Blodget's stock coverage would be released shortly, and that Merrill expects its universe of Internet stock coverage to expand. The spokesperson wouldn't comment when asked whether Blodget is expected to raise Merrill's profile in IPO deal-making and mergers and acquisitions.
But how much can Blodget bring to Merrill? Last year, the brokerage firm took 24/7 Media (TFSM) and uBid public (UBID) and led secondary offerings for Infoseek (SEEK) and @Home (ATHM). CIBC Oppenheimer was the lead manager for one deal: Abovenet.com (ABOV).
Merrill was also instrumental in Internet merger mania. The company advised Infoseek in its deal with Disney. Merrill also is advising @Home in its deal with Excite (XCIT).
CIBC Oppenheimer and Blodget weren't immediately available for comment. |
