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| ![]() | ![]() MAY 4, 2005
![]() WORD ON THE STREET Piper Jaffray Upgrades United OnlineAnalyst Safa Rashtchy says the Internet access service company core dial-up business apppears to be stable and subscription services have potential growthPiper Jaffray upgrades Internet access service company United Online (UNTD ) to outperform from market perform. Analyst Safa Rashtchy says the core dial-up business appears to be stable and the company had a net gain of 30,000 total subscribers in the first quarter. He notes new subscription services (Classmates, 3G, VOIP) offer potentially higher growth. Also, he notes the company has set a 20 cents per share quarterly dividend. Lastly, Rashtchy says United Online's valuation, currently at about 3 times estimated 2006 EBITDA (vs. universe average of 12%) has already significantly discounted competitions and slower growth rates. He raises his 99 cents 2005 earnings per share estimate to $1.03, $1.04 2006 earnings per share to $1.06, and his $11 target to $13. ![]() All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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