Enron Corp. - University of California | Office of The President

• This is a huge step forward for Enron to drive broadband high content
Internet traffic onto its network, and we believe will further enhance
Enron's first mover advantage to deliver unique performance-enhanced
services to next generation content providers and ISPs.
* * *
• We reiterate our Strong Buy rating on shares of Enron ....
204. On 1/21/00, JP Morgan issued a report on Enron. It rated Enron a "Buy," increased
the stock's target price to $85, forecast 00 and 01 EPS of $1.41 and $1.69 for Enron and stated:
We are reiterating our BUY recommendation on Enron and raising our 12-month
price target to $85 .... Our continued optimism in Enron is fueled by the tangible
and exciting prospects within the Communications business that the company
unveiled at its analyst meeting yesterday....
Enron Broadband Services is the New Jewel in Enron's Portfolio ....
As promised, Enron unveiled its communications business at yesterday's
analyst meeting.... Enron Broadband Services (EBS) is well underway in executing
its three-prong approach.
• Bandwidth trading to facilitate the lowest cost global fiber-optic network
• Network management to find the low cost, high quality path for data
• Using the two components above for broadband content delivery
* * *
... Enron is unquestionably the pioneer in this market and is already executing on
this strategy. Bandwidth is being traded, content is being delivered and the Enron
Intelligent Network enables all of this. The market opportunity is enormous with
bandwidth trading and broadband delivery estimated to reach $70 and $25 billion,
respectively, by 2004.
* * *
The retail business plans to double its contract volume in 2000 to $16 billion,
delivering a $150 million swing to profitability.
205. On 1/21/00, CS First Boston issued a report on Enron. It forecast 00 EPS of $1.35
and a 15% five-year EPS growth rate for Enron. It also stated:
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