Easylink Services (NASDAQ:EASY)
Historical Stock Chart
From Jun 2019 to Jun 2024
Dutton Associates updates its coverage of EasyLink Services
(Nasdaq:EASY) maintaining a Speculative Buy rating and a 12 month price
target of $6.75. The 10-page report by Dutton senior analysts Joe Noel
is available at www.jmdutton.com,
and from First Call, Bloomberg, Zacks, Reuters, Knobias, and other
leading financial portals.
We continue to rate shares of EasyLink Services Corporation at
Speculative Buy for two reasons: 1) First, we and the Company’s
management team are predicting a rather dramatic turnaround in
operations during 2007 with the Company likely turning profitable after
two years of losses. We believe management’s
2007 earnings guidance in the range of $0.20 to $0.30 per share is
reasonable, although we believe the high end of management’s
guidance could be a bit overly aggressive, and 2) we believe this
Company is an excellent acquisition target. We view shares of EasyLink
as being significantly undervalued relative to a reasonable acquisition
price. On January 19, EasyLink said its board of directors had formed a
committee of independent directors to review strategic alternatives
including a possible merger. On March 1, EasyLink announced that a
committee of its board of directors is continuing to review the
Company's strategic alternatives and expects to complete its work to
make a recommendation to the full board in the near term. We believe the
arguments for selling this Company relative to the maximization of
shareholder value are compelling.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 31 analysts, primarily CFAs, have expertise in
many industries. Dutton Associates provides continuing analyst coverage
of over 145 enrolled companies, and its institutional-quality research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$35,000 prepaid for 4 Research Reports, typically published quarterly,
and requisite Research Notes. Dutton Associates received $83,500 from
the Company for 13 Research Reports with coverage commencing on
9/04/2002. We do not accept payment of our fees in company stock. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the subject
securities or issuer. Neither the analyst's compensation nor the
compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please read
full disclosures and analyst background at www.jmdutton.com
before investing.