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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: AlexGK who wrote (256)	5/28/1999 3:57:00 AM
From: SteveG	Read Replies (2) \| Respond to of 1860

CSFB/Governali - INTRADAY: NXLK: Raising Price Target To $120 BUY LARGE CAP NEXTLINK Communications, Inc. (NXLK) Raising Year-End 1999 Price Target to $120 from $58. Summary We are raising our year-end 1999 price target on NEXTLINK to $ 120 from $58 to reflect the company's expanded data services focus and market opportunity which should raise long term growth. We believe NXLK is led by one of the top management teams in the business. They are putting together the right assets to continue to penetrate the local market. NXLK's national fixed wireless capability should allow it to more efficiently (cost and capital) reach customers while at the same time increasing the company's addressable market and speed to market. We are raising our 1999YE EPS to a loss of $10.57 from a loss of $9.46 to reflect higher interest expense than forecast. We continue to view NXLK as a core holding in the CLEC group and reiterate our Buy rating. Price Target Mkt.Value 52-Week 5/25/991 (YE 1999) Div. Yield (MM) PriceRange 76.13 $120 NA $4,575 $85-11 Annual Prev. Abs. Rel. EV/ EBITDA/ EPS EPS P/E P/E EBITDA Share 12/99E $(10.57) $(9.46) NA $(3.49) 12/98A (6.26) NA (2.62) 12/97A (3.91) NA (1.75) March June Sept. Dec. FY End 1999E $(2.17)A (2.73)E (2.97)E (3.23)E Dec 31 1998A $(1.19) $(1.42) $(1.57) $(2.07) 1997A NA NA (1.08) (1.09) ROIC (3/99) (12.01%) Total Debt (3/99) $2.04 bil. Book Value/Share (3/99) NM WACC (3/99) 12.29% Debt/Total Capital (3/99) 113.2% Common Shares 60.1 mil. EP Trend2 Positive Est. 5-Yr. EPS Growth Est. 5-Yr. Div. Growth NA 1On Error! No text of specified style in document. DJIA closed at 10531.1 and S&P 500 at 1284.4. 2Economic profit trend. NXLK is a rapidly growing CLEC competing with incumbent local exchange carriers (ILECs) to provide small and medium-sized business customers with local, long distance, and data transport services. NXLK is the largest holder of LMDS frequencies with licenses serving approximately 95% of the nation's population. Currently, NXLK serves 38 markets in 14 states, including CA, CO, NV, UT, IL, OH, TN, NY, GA, OR, WA, FL, and PA.