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Technology Stocks : Teligent -- Ignore unavailable to you. Want to Upgrade?

To: Don S.Boller who wrote (167)	4/6/1999 2:54:00 PM
From: SteveG	Read Replies (1) \| Respond to of 270

TGNT: Fine-Tuning Model To Incorporate Recently Filed 10-K Information And New 1Q Expectations Bankers Trust Research/BT Alex. Brown Research Bo Fifer,Jeffrey Hines April 06, 1999 HIGHLIGHTS: -- We have made modest changes to our expectations for Teligent post a review of their recently filed 10-K, and a preview of 1Q 1999 results. We have made no major changes. Based on our DCF our 12-month price objective is $50/share. -- FORWARD EXPECTATIONS: We have made no major changes although the timing of Teligent's revenue growth has been adjusted to back-end weight the year more heavily. We believe Teligent will report strong building growth throughout the year, however the process of provisioning orders may lead to the majority of revenue hitting in 2H 1999. Headline Estimates 1998A 1999E 2000E 1Q98A 1Q99E Revenues (MM) $1.0 $32.4 $164.4 $0.1 $1.8 Cash flow* (MM) ($206) ($340) ($298) ($26.5) ($80.3) Subscribers 1,000 10,000 28,700 -- 2,500 Buildings On Net 200 2,000 5,200 -- 800 Access Lines 10,000 80,000 290,000 -- 15,000 * EBITDA before non-cash compensation expenses. Source: BT Alex. Brown estimates, Company documents. -- STOCK PRICE PERFORMANCE: TGNT is up 46% YTD, ahead of our CLEC Index (up 39%) and the S&P500 (up 7%). -- NET-NET: Investors, we believe, are beginning to realize the potential "center of the universe" position of wireless (fixed and mobile) in the telecommunications marketplace. Recent M&A announcements point to the strategic value of fixed wireless (e.g., Nextlink and WorldCom making investments) for bypassing the local loop. We believe that Teligent makes for an attractive fundamental story long term, if the M&A activity doesn't catch up with it first.