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Robertson Stephens Initiates Coverage on Several Companies

Strategic Insights

— 1 min read

Robertson Stephens, a leading full-service investment bank, has initiated coverage on several companies in the technology and telecommunications sectors. In a series of reports, the firm's analysts provided in-depth analysis and recommendations on Reynolds and Reynolds, Saba Software, CacheFlow, LookSmart, and XO Communications.

The reports highlight the unique positioning of each company in their respective markets and provide detailed estimates and projections for future growth. Robertson Stephens' analysts are upbeat about the prospects of these companies, citing their strong management teams, solid financing positions, and innovative products.

Key Takeaways:

  • Reynolds and Reynolds is the leading software and information systems company serving the auto retailing industry, with a 37% market share in core RMS systems of North America's 25,000 franchised dealers.
  • Saba Software reported strong first-quarter fiscal 2001 results, with revenues growing 32.5% sequentially to $10 million, beating the analysts' estimates.
  • CacheFlow is well-positioned to gain leadership in the caching market, with a strong presence in enterprise, Web hosting, and ISP customer wins, and an expected market size of $6-8 billion by 2004.
  • LookSmart's agreement with InfoSpace will allow the company to expand its reach, with databases reaching over 80% of all Internet users and InfoSpace's network reaching over 90% of all Internet users.
  • XO Communications is a focus stock given its highly strategic fiber/fixed wireless/DSL asset portfolio, strong management team, and solid financing position.

Statistics:

  • Reynolds and Reynolds has a target price of $25 per share, according to Robertson Stephens' estimate.
  • Saba Software's first-quarter fiscal 2001 revenues grew 32.5% sequentially to $10 million, beating the analysts' estimates.
  • CacheFlow is expected to gain leadership in the caching market, with a market size of $6-8 billion by 2004.
  • LookSmart's databases reach over 80% of all Internet users, and InfoSpace's network reaches over 90% of all Internet users.
  • XO Communications has a solid financing position, with an estimate of meeting or exceeding third-quarter 2000 analyst expectations.

Sources:

  • Robertson Stephens, Inc. - a leading full-service investment bank focused exclusively on growth companies.
  • PRNewswire - Sept. 26, 2000.
  • Internet Archive - Robertson Stephens, Inc., Notes on Robertson Stephens, Inc. Nasdaq Symbol: RSRP.

Note: Robertson Stephens' reports are available for public viewing on the company's website.

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