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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: ct who wrote (1196)	9/6/1999 5:12:00 PM
From: DOUG H	Respond to of 3664

BancBoston Robertson Stephens Reiterates Buy Rating on EXDS PR Newswire - August 30, 1999 12:33 SAN FRANCISCO, Aug. 30 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271: BancBoston Robertson Stephens senior eCommerce analyst Rick Juarez today reiterated his Buy rating on Exodus Communications Inc. (Nasdaq: EXDS). The company, headquartered in Santa Clara, Calif., is a leading business centric provider of Internet systems and network management solutions for companies seeking to outsource the hosting of their mission critical Internet operations. "We are reiterating our Buy rating on Exodus, as the demand for outsourced business to business access, hosting and application services is expected to grow to $36 billion by fiscal year 2001," said Juarez. "We are updating our 1999 and 2000 earnings per share estimates to reflect a two for one stock split effective August 12. We increase our 1999 estimates from ($2.19) to ($1.09) and our 2000 estimates from ($0.94) to ($0.47). In addition, we are updating our twelve-month price target to $138 based on 25 times fiscal year 2000 revenues," said Juarez.

To: ct who wrote (1196)	9/7/1999 7:43:00 AM
From: GHowe	Read Replies (1) \| Respond to of 3664

Reiterating a rating and raising a price target is irrelevant for many shares in the data communications/Internet space. Reducing revenues and/or pushing out positive results matter much more. The reason is that the valuation measure is very much of an art and not a science. Analysts tend to use whatever measure will support whatever price target that they believe is "fair," as we do not have a P/E, P/EBITDA per share, or whatever, to use. For the traditionalist, the discounted cash flow model is most typical, not P/Revenue. And even the DCF is merely guessing. As stated, revenues estimates are coming down, not up. If one wanted to use P/Revs, trailing revenues are best as they are actual, historical numbers, not some guess by an analyst. That said, management's timing of this, as well as the manner of dissemination is suspicious. And momentum investors will not be pleased. However, Exodus' management has always been a bit fast and loose with its statements.