Company Press Release
Robertson Stephens Reiterates Strong Buy Rating on AOL
Establishes $115 Price Target
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 28, 2000--Robertson Stephens Senior Internet Analyst Michael Graham today reiterated his Strong Buy rating
on America Online (NYSE:AOL - news), following recent weakness in the company's shares.
``We believe now is the time to re-engage on AOL stock, as the shares have been weak since the Time Warner merger announcement for a couple of reasons which
appear on the brink of being resolved in the market,'' said Graham. ``We have encountered a `dead money until the merger closes' mentality, which we believe could
quickly give way to a `how high is up' mentality in a positive market. It appears AOL stock has bottomed, showing several days of stability around $60, after
reaching lows around $45.''
``We believe the outlook for a strong March quarter and the rollout of AOL TV could be potential catalysts to move the stock higher,'' said Graham. ``We continue
to believe that AOL TV will be an important indicator of the combined AOL/Time Warner's ability to capture more time per household.''
``We are reiterating our Strong Buy rating and instituting a $115 price target, based on our belief that the combined AOL/Time Warner can achieve 30 percent
EBITDA growth over the next several years,'' said Graham. ``We believe this price target is conservative, given the ability for such a large audience to generate more
usage and upside and the ability for such a dominant company to secure a premium multiple.''
Clients interested in receiving more information should contact their salesperson at (415) 781-9700.
Robertson Stephens (www.rsco.com) is the leading full-services investment bank focused exclusively on growth companies. In 1999, the firm completed over 230
public offerings and over 40 private offerings, raising more than $40 billion in capital for clients. In addition, the firm advised on over 80 M&A transactions in 1999
with an aggregate value in excess of $50 billion. The firm's 47 equity research analysts cover nearly 700 companies. Founded in 1978, Robertson Stephens (Legal
name: FleetBoston Robertson Stephens Inc.) is a section 20 subsidiary of FleetBoston Financial Corporation (NYSE:FBF - news) and a member of the NASD and
all major exchanges. Together, Robertson Stephens, FleetBoston Robertson Stephens International Ltd., and Robertson Stephens Evergreen Securities Ltd. employ
over 1,000 employees worldwide with offices in Boston, San Francisco, New York, Menlo Park, Chicago, London, and Tel Aviv.
The foregoing synopses are qualified in their entirety by the more detailed information contained in the full research reports, including the discussion of certain risks
associated with an investment in the above-mentioned securities contained in ``Investment Risks.''
The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates
expressed herein reflect the current judgment of FleetBoston Robertson Stephens Inc., the information upon which such opinions and estimates are based is not
necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without
notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the
forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in ``Investment Risks.'' FleetBoston Robertson
Stephens Inc. from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic
information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be reliable, FleetBoston Robertson Stephens Inc. has not independently verified the facts,
assumptions and estimates contained in this Report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be
placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. FleetBoston Robertson Stephens Inc., its
managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this
report is in circulation. FleetBoston Robertson Stephens International Ltd. is regulated by the Securities and Futures Authority in the United Kingdom. This
publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of Fleet
Bank or BankBoston N.A., and are subject to investment risk, including possible loss of any principal amount invested.
Robertson Stephens Reiterates Strong Buy Rating on AOL
Establishes $115 Price Target
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 28, 2000--Robertson Stephens Senior Internet Analyst Michael Graham today reiterated his Strong Buy rating
on America Online (NYSE:AOL - news), following recent weakness in the company's shares.
``We believe now is the time to re-engage on AOL stock, as the shares have been weak since the Time Warner merger announcement for a couple of reasons which
appear on the brink of being resolved in the market,'' said Graham. ``We have encountered a `dead money until the merger closes' mentality, which we believe could
quickly give way to a `how high is up' mentality in a positive market. It appears AOL stock has bottomed, showing several days of stability around $60, after
reaching lows around $45.''
``We believe the outlook for a strong March quarter and the rollout of AOL TV could be potential catalysts to move the stock higher,'' said Graham. ``We continue
to believe that AOL TV will be an important indicator of the combined AOL/Time Warner's ability to capture more time per household.''
``We are reiterating our Strong Buy rating and instituting a $115 price target, based on our belief that the combined AOL/Time Warner can achieve 30 percent
EBITDA growth over the next several years,'' said Graham. ``We believe this price target is conservative, given the ability for such a large audience to generate more
usage and upside and the ability for such a dominant company to secure a premium multiple.''
Clients interested in receiving more information should contact their salesperson at (415) 781-9700.
Robertson Stephens (www.rsco.com) is the leading full-services investment bank focused exclusively on growth companies. In 1999, the firm completed over 230
public offerings and over 40 private offerings, raising more than $40 billion in capital for clients. In addition, the firm advised on over 80 M&A transactions in 1999
with an aggregate value in excess of $50 billion. The firm's 47 equity research analysts cover nearly 700 companies. Founded in 1978, Robertson Stephens (Legal
name: FleetBoston Robertson Stephens Inc.) is a section 20 subsidiary of FleetBoston Financial Corporation (NYSE:FBF - news) and a member of the NASD and
all major exchanges. Together, Robertson Stephens, FleetBoston Robertson Stephens International Ltd., and Robertson Stephens Evergreen Securities Ltd. employ
over 1,000 employees worldwide with offices in Boston, San Francisco, New York, Menlo Park, Chicago, London, and Tel Aviv.
The foregoing synopses are qualified in their entirety by the more detailed information contained in the full research reports, including the discussion of certain risks
associated with an investment in the above-mentioned securities contained in ``Investment Risks.''
The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates
expressed herein reflect the current judgment of FleetBoston Robertson Stephens Inc., the information upon which such opinions and estimates are based is not
necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without
notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the
forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in ``Investment Risks.'' FleetBoston Robertson
Stephens Inc. from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic
information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be reliable, FleetBoston Robertson Stephens Inc. has not independently verified the facts,
assumptions and estimates contained in this Report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be
placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. FleetBoston Robertson Stephens Inc., its
managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this
report is in circulation. FleetBoston Robertson Stephens International Ltd. is regulated by the Securities and Futures Authority in the United Kingdom. This
publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of Fleet
Bank or BankBoston N.A., and are subject to investment risk, including possible loss of any principal amount invested.
