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Technology Stocks : Audible Inc-(Nadaq-ADBL) -- Ignore unavailable to you. Want to Upgrade?

To: Gordon Gekko who wrote (86)	8/10/1999 5:43:00 PM
From: AlienTech	Read Replies (1) \| Respond to of 165

ADBL report from WITC We are initiating coverage of Audible with a BUY rating. Audible is a first mover in its space, and, as such, is difficult to value according to our usual parameters. Using a 40x-45x multiple of 2001E revenues, we have arrived at an initial target price of $15 per diluted share, representing 103% appreciation from current levels. While the implied near term revenue multiple is higher than that of many companies in our coverage universe, we believe it is justified due to the scalability, potential profitability, barriers to competitive entry, and magnitude of the opportunity at hand. witcapital.com Valuation and Recommendation We are very enthusiastic about the long-term prospects for Audible. The company has a strong management team, a solid technological platform, and an enviable competitive position. As the company raises awareness of the Audible brand through a major public relations campaign, we believe that investors will come to understand the enormity of the opportunity at hand. We are initiating coverage of Audible with a BUY rating. Based on diluted shares outstanding, Audible currently trades at a 20x multiple of estimated 2001 revenues of $9.6 million. The shares have retreated to a price below the company's initial public offering price, in part due to a market-wide sell off in technology issues and due to fears of rising interest rates. We believe that the market sell off may have punished Audible unfairly, as Audible's market capitalization has receded by 70% over the last four weeks. We believe this represents a tremendous buying opportunity for investors. Our 12-18 month target price of $15 per share is based on a 40x-45x multiple of 2001E revenues, a multiple we believe is justified given the company's competitive position and potential profitability. Our valuation methodology, and correlating revenue multiple, incorporate not only what Audible is today, but also what it may become. In the next five years, we believe Audible will continue to expand its customer base, its selection of licensed content, and its offering of original content. The company is a creative and technological leader, and, as such, can create new markets and expand existing markets. In so doing, the company has the ability to generate significant increases in shareholder value for years to come.