ABTL
By Dean Tomasula
Each week, The Internet Analyst will look at analyst's picks for public Internet companies that may not be brand
names, but are intriguing and deserve a closer look.
The image of the used car salesman as a fast-talking, disingenuous huckster is fast becoming a quaint perception
thanks to the Internet and companies such as AUTOBYTEL.COM (ABTL) and AUTOWEB (AWEB), which use
the Net to bring auto buyers and sellers together. James Preissler, an Internet analyst at PaineWebber, thinks
these companies have "the potential to change the auto buying landscape." In fact, they already have, he added.
Mr. Preissler follows AUTOBYTEL.COM and has assigned it a BUY, PaineWebber's highest rating, with a price
target of $65. For 1999, he revised his earnings estimates and now expects the company to post a loss of $1.79
per share, down from his previous estimate of a loss of $1.89 per share. For 3Q99, AUTOBYTEL.COM is
expected to post a loss of $0.41 per share. That is forecast to improve to a loss of $0.38 per share in 4Q99. On
May 4, AUTOBYTEL.COM's shares closed at $27.50. The company has a market cap of $471.03 million.
"One of these companies will emerge as the [market] leader," said Mr. Preissler. "There is a big opportunity
here."
Mr. Preissler also said there is potential opportunity in the security sector, particularly beyond 2000. Once
companies wind down from the trauma of dealing with the Y2K problem, he noted, they will realize there still are
network security concerns to be dealt with — most notably as it relates to their e-commerce efforts.
"The security space has taken a beating lately," he said. "But by the first and second quarters [of calendar 2000],
companies will be buying security products." |
