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.''
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.''
