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

210. On 1/28/00, Deutsche Bank issued a report on Enron. It rated Enron a "Buy," raised
the stock's target price to $90 and forecast 00 EPS of $1.35 and a 15% three-year EPS growth rate
for Enron. It also stated:
All we can say is WOW!... Enron stole the show last week at its annual analyst
conference in Houston.... Enron management unleashed a strategy that projects
monumental earnings potential over the next 5 years.... At the conference, Enron
management projected over $2.25 in operating income in 2004 from the content
services and bandwidth intermediation portions of its strategy.
As such, we are raising our target price on ENE shares to $90/share .... We
reiterate our BUY recommendation on ENE shares.
We believe Enron's 1999 earnings results demonstrate its best-in-class natural gas
and power marketing and energy services skills.... We fully anticipate that the
company will be capable of producing EPS growth in excess of 15% ....
211. On 2/9/00, JP Morgan issued a report on Enron. It rated Enron a "Buy," with a price
target of $85, and forecast 00 and 01 EPS of $1.41 and $1.69 and a 20% five-year EPS growth rate
for Enron. It also stated:
reported:
Today, we believe that Enron Broadband Services (EBS) offers an opportunity that
may ultimately create more value than Enron's entire energy business portfolio.
* * *
We believe that at no point did Enron's energy business enjoy such sound
prospects both domestically and international, across the retail and wholesale
sectors. ... We forecast 20% EPS growth ....
212. On 2/16/00, Lay appeared at an Investor Conference in New York. Bloomberg News
"Bandwidth trading could provide us with our highest potential growth,"
said Lay, whose company had $40.1 billion in revenue last year.
* * *
Enron Corp., an energy company that is building a telecommunications
business, expects the market for trading space on fiber-optic networks to more than
triple to $95 billion a year by 2004.
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