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RealTime IT News

Analysts Boost Net Stocks

Internet stocks were trading slightly higher in mid-day trading after a number of positive earnings announcements and powerful comments from industry analysts.

internet.com's Internet Stock Index (ISDEX) was up 0.06, or 0.01 percent, to 931.90, the Nasdaq composite was adding 17.72 to 4438.49 and the Dow Jones Industrial average had fallen 58.33 to 10659.76.

PurchasePro.com (PPRO) was up 12-3/8 to 131-7/8. First Boston initiated coverage with a "strong buy" rating and 12-month $205 price target.

In addition, First Boston raised its near-term price target on Razorfish (RAZF) to $75. Shares were trading down 5-3/4 to 46-1/8.

After yesterday's close, Lycos (LCOS) reported earnings of $0.03 per share, two cents better than the First Call mean estimate. Merrill Lynch analyst, Henry Blodget reacted by raising his near-term rating from "accumulate" to "buy."

"Lycos reported an impressive quarter, exceeding consensus revenue, EPS and pageview estimates. The outlook for the next few quarters remains strong. We are raising our estimates and, for the following reasons, raising our near-term rating to Buy, with a 12-month price objective of $100. The valuation is cheap by Internet standards (90X C2001E EPS), and we believe there is still upside to our estimates" wrote Blodget in a note to clients. Shares of LCOS were up 4-3/4 to 73-13/16.

ShopNow.com (SPNW) had slipped 7/16 to 13-1/4. CIBC World Markets initiated coverage with a "buy" rating and $30 price target.

Netcentives (NCNT) , an Internet customer loyalty company, announced it will acquire Post Communications for roughly $333 million in stock. Post provides email marketing services. Shares of NCNT lost 3-1/2 to 48-1/2.

Shares of the natural language search engine, Ask Jeeves (ASKJ) fell 3-9/16 to 78-15/16. The company has filed for a secondary offering totalling 1.8 million shares.


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