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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Ed Forrest who wrote (8776)	3/31/1999 1:44:00 PM
From: Vendit™	Read Replies (2) \| Respond to of 41369

Net stocks fired up Wit Capital slaps $185 price target on AOL NEW YORK (CBS.MW) -- Internet stocks flew higher Wednesday after America Online flew on the coattails of yet another bullish analyst call. America Online (AOL) rose 6 1/4 to 150 3/4. Wit Capital Internet analyst Jonathan Cohen fueled the euphoria behind the blue-chip Webasaurous. Cohen started coverage on AOL with a "buy" rating and a 12- to 18-month price target of $185. The AOL plug comes one day after PaineWebber issued a "buy" rating and a more optimistic $215 price objective. Last week, NationsBanc Montgomery Securities gave AOL a price target of $155 and a "buy" rating. Cohen backed his bullish outlook by noting that AOL has the ability to leverage its base of 17.5 million subscribers by adding higher-margin revenue streams. This would "differentiate AOL's product and substantially increase cash flow per subscriber," he said. Cohen also said AOL's subscriber based could grow to 30.6 million by mid-2001, up from 17 million currently. On Tuesday, PaineWebber Net guru James Preissler gave a similar endorsement, saying AOL's domestic online usage could equal "the magnitude of domestic cable penetration" in due time. With regard to AOL's just-completed acquisition of Netscape, Cohen said he does not expect the company to "pursue another Netscape-like acquisition until after fully-absorbing (that Silicon Valley pioneer)." While it remains unclear how much revenue and cash flow AOL will generate from its business alliance with Sun Microsystems (SUNW), Cohen said the result will likely be "a case where 1 + 1 + 1 = 4." cbs.marketwatch.com