Bear Stearns Launches Coverage of European Pure Play Carrier Global TeleSystems Group.NEW YORK--(BUSINESS WIRE)--May 13, 1999-- Analyst Places a Buy Rating on Emerging Global SuperCarrier Bear, Stearns & Co. Inc. telecommunications analyst James H. Henry today launched coverage of Global TeleSystems Group, Inc. (GTSG) with a Buy rating and a year-end 1999 price target of $105 per share. A leading equity analyst, Mr. Henry currently covers 18 companies in the telecommunications and Internet industries. Global TeleSystems is a rapidly growing European integrated communications provider that offers a portfolio of local, long distance, data, and Internet services. "We believe that GTS GTS abbr. gas turbine ship offers a unique and highly compelling opportunity for investors looking to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the historic opportunity created by the deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the European telecom market," Mr. Henry said today. "The company has a first-to-market advantage among the European new entrants and has aggressively leveraged that position to accelerate the deployment of its network infrastructure, the expansion of its product portfolio, and the growth of its customer base." The company is deploying a 25,000-kilometer pan-European long distance fiber network, a 12,000-kilometer transatlantic long distance fiber network, and CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) fiber networks in 12 of the top cities in Europe. When GTS's long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. network is complete at year-end 2000, the company will have the most extensive network among all new entrants in Europe. GTS is attacking the $175+ billion European telecom market opportunity for voice, data, and Internet services. Henry pegs Global TeleSystems as one of only a handful of high-growth, large-cap telecom SuperCarriers with solid competitive prospects, attractive liquidity profiles, and compelling valuations. "We believe that there are few - if any - companies as well positioned as GTS to take significant market share away from the incumbent PTTs in Europe and to capitalize on the burgeoning demand for broadband data, Internet, and international services," he added. "There are a number of positive catalysts that should propel GTS toward our $105 price target including: (1) a European listing and perhaps a European index induction, (2) a long distance network or bandwidth acquisition in the US, (3) the acceleration of its CLEC network buildout, (4) the potential for additional accretive acquisitions, (5) the transition to consolidated financial reporting and management guidance, and (6) the sale or spin-off of GTS's Eastern European-CIS assets." Bear, Stearns & Co. Inc., a leading worldwide investment banking and securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the and brokerage firm, is a major subsidiary of The Bear Stearns Companies Inc. (NYSE NYSE See: New York Stock Exchange : BSC (Binary Synchronous Communications) See bisync. ). With approximately $19.3 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, private client services, derivatives, asset management, correspondent clearing, securities lending Securities Lending When a brokerage lends securities owned by its clients to short sellers. Notes: This allows brokers to create additional revenue (commissions) on the short sale transaction. and custody services. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the company has approximately 9,600 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our website at http://www.bearstearns.com. |
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