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To: freeus who wrote (969)	5/23/2001 4:17:49 PM
From: im a survivor	Read Replies (1) \| Respond to of 13815

CSFB Sees Near-Term Rise in AOL Stock May 23 12:29pm ET NEW YORK (Reuters) - Shares of AOL Time Warner Inc. should continue to rise in the near term as the company has raised the price of its flagship Internet service and investors are underweighted in the stock, Credit Suisse First Boston said on Wednesday. Several other Wall Street firms raised their price targets and earnings estimates after the world's largest Internet and media company said on Tuesday it will increase the price of its America Online unlimited use plan by $1.95 to $23.90 beginning with the July billing cycle. Merrill Lynch's Henry Blodget raised his price target to $65 to $70, and Jefferies & Co. analyst Fred Moran increased his to $68 from $58. In midday New York Stock Exchange trade, AOL Time Warner shares were at $55.50, down 65 cents from Tuesday's close, but up more than 70 percent from the beginning of the year, outperforming most Internet and media rivals. "It's clear that with the price increase AOL is feeling comfortable about both its 2001 targets and the range of investment opportunities and resources available," CSFB analyst Jamie Kiggin said in a research note. "Management will now increasingly focus on 2002 targets." AOL Time Warner has said it expects to post 2001 earnings before interest, tax, depreciation and amortization of $11 billion on revenues of $40 billion. For 2002, Kiggen said he expects $13.7 billion in EBITDA and revenues of $47.4 billion. He said AOL Time Warner Co-Chief Operating Officer Bob Pittman told him and other CSFB analysts that the company needs to continually streamline its business and eliminate weak businesses and unproductive headcount to meet those targets. "We are not commenting on Mr. Kiggen's report," AOL Time Warner spokeswoman Tricia Primrose said, "but what Mr. Pittman said at the luncheon with CSFB analysts is consistent with everything the company has been saying for months now." In his note, Kiggen also said Pittman suggested AOL would look at possible alliances or pacts with British cable operator NTL and online retailer Amazon.com Inc. among others, as well as possibly deepening its existing relationship with eBay Inc. . The company has often said it is having talks with various parties. NTL said last month it was in early stage talks with AOL about a possible pact in Europe, but said a deal was not imminent. Separately, Jefferies' Moran raised his full-year estimates for AOL Time Warner to $40.8 billion in revenue from $40.7 billion and to $10.9 billion in EBITDA from $10.7 billion.