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Technology Stocks : Allegiance Telecom (ALGX) -- Ignore unavailable to you. Want to Upgrade?

To: REDDY who wrote (23)	3/1/1999 10:01:00 PM
From: Brent Gilbertson	Read Replies (1) \| Respond to of 145

Finance Home - Yahoo! -------------------------------------------------------------------------------- Click here NOW for iMALL Top > Business and Finance > Stocks > Services > Communications Services > ALGX (Allegiance Telecom, Inc.) Help - Add to My Yahoo! - Sign Out Goldman Raised Price Target. Info released to customers. by: Z_Larry (1/M/Arrington VA) 627 of 627 Goldman raised their 1999 price target the other day from $22 per share to $38 per share. I'm quoting from their report: "We reaffirm our purchase recommendation of the shares of Allegiance Telecom, an early stge CLEC. We believe that Allegiance Telecom's valuation is compelling, as the shares are traded well below our $38 discounted cash flow (DCF) target price. Our DCF estimates are based on our forecast that revenues are likely to grow tebfold in 1999 and triple in 2000, reaching $300 million in two years. By 2007, we estimate that Allegiance Telecom could have $2.3 billion in revenue or a 4%-5% penetration in its targeted local markets. We believe that an investment is waranted due to Allegiance's high-quality management team (CEO Royce Holland is the former president of MFS Communications) and encouraging early results from its Tier I markets. . . . Allegiance Reaches Postive Gross Margins Ahead of Schedule We have raised our 1999 price target for Allegiance shares to $38 from $22, as the company continues to roll out its network faster than we expected and in a more profitable fashion. . . The company reached its first quarter of positive gross margins, topping 10%, far better than the negative 7% we estimated." The report went on to praise Allegiance. It was quite positive. The report does not seem to have been publicly distributed -- instead it was circulated among Goldman customers. Like Millerboy-98, I have heard that more target price increases are forecoming. -------------------------------------------------------------------------------- Posted: Mar 1 1999 7:28PM EST as a reply to: Msg 626 by Millerboy98 Related Links Quote Profile Research Insider -------------------------------------------------------------------------------- Go to: Start \| Most Recent \| Msg #: All Boards Only in this Board All Boards & Topics Authors -------------------------------------------------------------------------------- Terms and Conditions Yahoo! is a trademark of Yahoo! Inc. Copyright © 1994-99 Yahoo! All Rights Reserved.