BlueStone Capital Announces Investment Opinion on Yahoo!Business Editors NOTE TO EDITORS: The following is an investment opinion issued by BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital BlueStone Capital Initiates Coverage on Yahoo! with 2 (Outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. ) Rating NEW YORK--(BUSINESS WIRE)--Jan. 30, 2001 Senior Analyst Kathleen Kathleen may refer to: People with the given name Kathleen:
Irish poet whose work is typified by dense, earthy imagery and concern for the political crises of his homeland. His books include Death of a Naturalist (1966) and Field Work (1979). and Analyst Olga Urgiles of BlueStone Capital initiate coverage Initiate coverage (1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position). on Yahoo, (YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ; NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : $37.69) with a 2 Outperform investment rating and a 12-month price target of $ 55, respectively. ANALYST SUMMARY - We are initiating coverage of Yahoo! the most popular online portal with a 2 (Outperform) investment rating and target price of $55.00. In our opinion, Yahoo! has built an impressive brand and has leveraged that brand into a wide range of products and services for consumers. Yahoo! is uniquely positioned, in our view, as the leading company in a growing industry with decades of growth ahead of it. - Although we are optimistic about the long-term outlook for Yahoo! our enthusiasm is tempered somewhat by some key issues that the company needs to address in the near-term. They include: 1) replacement of dot.com ad dollars with more traditional offline companies, 2) the monetization of its user base, and 3) further development of recurring revenue streams. Thus, our buy rating reflects the lack of visibility in the near term or any catalyst that could move the shares significantly higher. Nevertheless, we believe a year from now as earnings rebound we will look back at the current year as a period of transition. - Our target price of $55.00 is based on a DCF, comparable company analysis, PEG ratios and EBITDA multiples. BlueStone Capital is a full service investment banking and brokerage firm focused on identifying investment opportunities in the emerging growth sector. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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