Analyst upgrade for Yahoo and Ask Jeeves
Raised YHOO target to $45 and ASKJ to $40.
UPDATE 1-Piper upgrades Ask Jeeves, Yahoo; shares rise
Fri Jan 14, 2005 10:00 AM ET
(Adds Yahoo upgrade, stock activity, details of report)
NEW YORK, Jan 14 (Reuters) - Ask Jeeves Inc. (ASKJ.O: Quote, Profile, Research) and Yahoo Inc. (YHOO.O: Quote, Profile, Research) are showing stronger-than-expected growth and gaining market share, a Piper Jaffray analyst said on Friday, sending the Internet search companies' shares up in morning trading.
The search market, which is powered by advertising linked to individual search terms, is one of the faster growing areas of the media business. Google Inc. (GOOG.O: Quote, Profile, Research) is the market leader, although the entrance of Microsoft is being closely watched.
Yahoo shares rose more than 2 percent, while Ask Jeeves was up more than 7 percent.
"Our latest research shows that the search market is much stronger than previously thought, possibly showing as much as 25 percent sequential revenue growth, well above the initial 15 percent estimate by the Street," said Piper Jaffray analyst Safa Rashtchy.
Both Yahoo and Ask Jeeves gained market share in the fourth quarter, he said, and ad rates have been rising as demand outstrips available inventory.
He raised Yahoo's price target to $45 a share, which represents a multiple of 30 times expected earnings before interest, taxes, depreciation and amortization, or EBITDA, a measure of cash flow. His previous target was $38 a share.
Yahoo shares were up 85 cents at $36.18 in early Nasdaq trade.
As for Ask Jeeves, Rashtchy disputed some assertions that the company to also-ran status, behind Google and Yahoo.
"Ask Jeeves is not only remaining a meaningful search alternative, but is gaining faster than most other players," he said.
He estimates the company's usage rates rose 18 percent from the third quarter, the highest increase for the sector. He upgraded his rating to "outperform" from "market perform" and raised his price target to $40, a multiple of 18 times estimated 2006 EBITDA. His previous target was $32.
Ask Jeeves stock was up $2 at $29.04.
On the other hand, LookSmart Ltd. (LOOK.O: Quote, Profile, Research) shares fell 34 cents, or 19 percent, to $1.47, a day after the company said earnings and revenue would fall short of its targets,
UPDATE 1-Piper upgrades Ask Jeeves, Yahoo; shares rise
Fri Jan 14, 2005 10:00 AM ET
(Adds Yahoo upgrade, stock activity, details of report)
NEW YORK, Jan 14 (Reuters) - Ask Jeeves Inc. (ASKJ.O: Quote, Profile, Research) and Yahoo Inc. (YHOO.O: Quote, Profile, Research) are showing stronger-than-expected growth and gaining market share, a Piper Jaffray analyst said on Friday, sending the Internet search companies' shares up in morning trading.
The search market, which is powered by advertising linked to individual search terms, is one of the faster growing areas of the media business. Google Inc. (GOOG.O: Quote, Profile, Research) is the market leader, although the entrance of Microsoft is being closely watched.
Yahoo shares rose more than 2 percent, while Ask Jeeves was up more than 7 percent.
"Our latest research shows that the search market is much stronger than previously thought, possibly showing as much as 25 percent sequential revenue growth, well above the initial 15 percent estimate by the Street," said Piper Jaffray analyst Safa Rashtchy.
Both Yahoo and Ask Jeeves gained market share in the fourth quarter, he said, and ad rates have been rising as demand outstrips available inventory.
He raised Yahoo's price target to $45 a share, which represents a multiple of 30 times expected earnings before interest, taxes, depreciation and amortization, or EBITDA, a measure of cash flow. His previous target was $38 a share.
Yahoo shares were up 85 cents at $36.18 in early Nasdaq trade.
As for Ask Jeeves, Rashtchy disputed some assertions that the company to also-ran status, behind Google and Yahoo.
"Ask Jeeves is not only remaining a meaningful search alternative, but is gaining faster than most other players," he said.
He estimates the company's usage rates rose 18 percent from the third quarter, the highest increase for the sector. He upgraded his rating to "outperform" from "market perform" and raised his price target to $40, a multiple of 18 times estimated 2006 EBITDA. His previous target was $32.
Ask Jeeves stock was up $2 at $29.04.
On the other hand, LookSmart Ltd. (LOOK.O: Quote, Profile, Research) shares fell 34 cents, or 19 percent, to $1.47, a day after the company said earnings and revenue would fall short of its targets,
posted by Twain at
7:30 AM
0 Comments:
Post a Comment
<< Home