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Computer peripherals industry

Robertson Stephens Initiates Coverage on Several Companies

Strategic Insights

— 3 min read

Robertson Stephens, a leading full-service investment bank, has initiated coverage on several companies across various sectors, including healthcare, technology, and real estate. The firm's analysts have issued buy ratings and provided estimates for the companies, citing their competitive advantage, strong revenue growth, and expanding market presence.

Key Takeaways:

  • CareScience, Inc. (Nasdaq: CARE) has been initiated with a buy rating due to its focus on reducing medical errors, a $35 billion market, and its significant investment with academic pedigree creating a competitive advantage.
  • CMGI, Inc. (Nasdaq: CMGI) has been adjusted to reflect a full quarter of operations from recent acquisitions, with revenues for fiscal 2001 expected to exceed two billion, demonstrating 20 percent sequential growth from existing units.
  • Getty Images (Nasdaq: GETY) has been upgraded to a buy rating, with the integration of VCG and The Image Bank on track, and the company executing well on its strategy of migrating as much of its business to the Web as possible.
  • DDI Corp. (Nasdaq: DDIC) has had its fiscal 2000 and 2001 cash earnings-per-share estimates raised due to increasing demand and accretion from the Automata acquisition.
  • Emulex Corp. (Nasdaq: EMLX) has had its estimates raised to reflect higher revenues and profitability reported in the June quarter, with the company's Fibre Channel business standing at 94 percent of revenues.
  • Taiwan Semiconductor (NYSE: TSM) has been upgraded to a buy rating, with the company's fundamentals continuing to strengthen, and earnings-per-share estimates for 2000 and 2001 taken to $0.82 and $1.16, respectively.
  • Four Seasons Hotels (NYSE: FS) has had its 2000 and 2001EPS estimates revised, with RevPAR growth of 12.6 percent, and the company's hotel strike in July having a $3 million impact.
  • Hilton Hotels Corporation (NYSE: HLT) has been retained as a buy, with the company's earnings-per-share estimated at $0.24, and demand trends remaining strong in July and August.
  • Pacific Gulf Properties (NYSE: PAG) has been upgraded to a long-term attractive rating, with the company reporting second quarter FFO per share of $0.70, and increasing its FFO per share estimates to $2.79 and $2.98, respectively.

Statistics:

  • CareScience, Inc. has a $35 billion market for reducing medical errors.
  • CMGI, Inc. expects revenues for fiscal 2001 to exceed two billion, demonstrating 20 percent sequential growth from existing units.
  • Getty Images has an integrated VCG and The Image Bank, with 94 percent of revenues from its Fibre Channel business.
  • DDI Corp. has had its fiscal 2000 and 2001 cash earnings-per-share estimates raised to $0.76 and $1.10, respectively.
  • Emulex Corp. has an EPS estimate of $1.13 for 2001.
  • Taiwan Semiconductor has an EPS estimate of $0.82 for 2000 and $1.16 for 2001.
  • Four Seasons Hotels has a RevPAR growth of 12.6 percent.
  • Hilton Hotels Corporation has an EPS estimate of $0.24.
  • Pacific Gulf Properties has an FFO per share estimate of $2.79 and $2.98 for 2000 and 2001, respectively.

Sources:

  • "CareScience plays into Government, health plans and employers' focus on reducing medical errors, a $35 billion market," said Skolnick.
  • "We remain extremely positive on the prospects for incubators and believe that CMGI is validating the model with its accelerating transition to an operating model," said Graham.
  • "Getty reported sold results and improving operating metrics, beating our revenues and EBITDA per share estimates by $8.6 million and $0.06, respectively," said Upin.
  • "We are raising our fiscal 2000 and 2001 Cash earnings-per-share estimates due to continuing strength in end market demand and accretion from the Automata acquisition announced Thursday, respectively," said Dunne.
  • "Emulex reported fixed fourth quarter (June) results well above published expectations," said the analysts.
  • "We are raising our estimates to reflect higher revenues and profitability reported in the June quarter and greater confidence in the company's business model," said Mizrakjian and Johnson.
  • "Four Seasons reported second quarter earnings-per-share of $0.53, above the consensus and our estimates," said Curtis.
  • "Hilton Hotels reported second quarter earnings-per-share of $0.23 versus consensus and second quarter 1999 earnings of $0.21," said Curtis.
  • "On August 3, Pacific Gulf Properties reported second quarter FFO per share of $0.70, $0.02 ahead of our estimate and the consensus estimate, representing FFO per share growth of 13 percent over second quarter 1999," said Leupp.

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