Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: red_dog who wrote (10773)	6/8/1999 7:22:00 AM
From: Badshah J.Wazir	Read Replies (2) \| Respond to of 29970

TO ALL, Prudential securities upgrade, whatever it is worth. ---------------------------------------------------------------------.Company Description Excite@Home Corp., (ATHM), based in Redwood City, CA, is an Internet-based content aggregation and distribution company. Through the Excite portal, the company offers Internet navigation services. ATHM's services, including audio, video, chat, news, and proprietary advertising, are accessible via cable modems connected into a high speed computer network. Investment Opinion: 06/07/99 at $95 3/4 We rate ATHM a STRONG BUY for the following reasons: * Fueled by increasing complexity and size of content over the Internet, we believe that the ATHM franchise will parallel many of the growth characteristics demonstrated by successful market leaders such as America Online (AOL). Accordingly, we believe that ATHM shares are positioned for aggressive growth and should be a core holding in any Internet-oriented portfolio. * Shares of ATHM encountered significant weakness recently following a court ruling in Portland, Oregon, stating that AT&T (T) must allow open access to their cable lines to Internet service providers (ISPs). We believe this sell- off was an over reaction based on fears that cable systems would be forced open nationwide, making increased competition to ATHM an imminent event. We do not believe this is the case as the appeal process following this decision is likely to take several (4-8) quarters to be resolved. We see no near term threat to ATHM's membership growth - the key to our valuation of these shares. * Taking a page from AOL's playbook, ATHM's recent acquisition of Excite (XCIT) will enable the aggregator of broadband outlets to reach an exceptionally fertile feeding ground of narrow-band users. More importantly, we expect that a combination would yield almost immediately positive results as measured by the number of online advertisers participating as @Home partners. Importantly, this acquisition makes it feasible for ATHM to undertake a national advertising/brand awareness campaign. As the Excite@Home brand gains greater recognition, we believe this provides a further catalyst to subscriber growth and interest in broadband services in general. * We believe ATHM is far more than just an Internet access company. Like Amazon.Com (AMZN), we believe ATHM has significant plans for audience capture and direct marketing with cable based delivery simply being the first step. Expected future products & services will include set top access, support for DSL (digital subscriber line) products, and directed licensing rights (and revenues) as the company duplicates its existing model into new markets, both domestic and international. * We continue to believe that use of a discounted cash flow (DCF) based analysis and valuation on a per-subscriber basis, remain the most effective vehicles for assessing the value of ATHM shares. As the company faces accelerated growth opportunities and a once-in-a-lifetime chance to establish, and/or further market share, we expect that operating expenses could show significant volatility. Analysis completed on the basis of break-even or profitability in any given quarter could prove less than reliable should the company adopt an aggressive approach at capturing market and mind-share. The combination of our DCF and per-subscriber analysis yield a price target of $250 per share. Prudential Securities Incorporated and/or its officers or its employees may have positions in any security of this issuer. Prudential Securities Incorporated makes a market in this security. Any statements non-factual in nature constitute only current opinions, as of the date on the top of this screen. Sales of securities covered by this record may be made only in those states where the security is qualified for sale. The contents of this publication have been approved for distribution in the United Kingdom by Prudential-Bache Securities (U.K.) Inc., an affiliated company and a member of The Securities and Futures Authority. Past performance is not a guarantee of future results. Prudential Securities Incorporated is a subsidiary of The Prudential Insurance Company of America, Newark, New Jersey. © Copyright 1995-1999 Prudential Securities Incorporated