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

is one of the only games in town when choosing a high-quality, reliable, and
scalable content provider. In our view, this deal is a great endorsement of its
capabilities.
We reiterate our Buy rating on Enron with a target price of $105.
243. On 7/19/00, Deutsche Bank issued a report on Enron. It rated Enron a "Buy" and
forecast 00 and 01 EPS of $1.38 and $1.58 and a 16% three-year EPS growth rate for Enron. It also
stated:
ENRON CORPORATION "BUY"
Another First!
• Enron and Blockbuster to launch entertainment on-demand service via Enron
Intelligent Network.
* * *
Today, Enron announced that it has entered into a 20-year exclusive agreement with
Blockbuster Inc.
* * *
... Beginning in 2001, Blockbuster expects to extend the service to other domestic
and international markets. For the first time, customers should be able to choose
from a large library of movies ... and will be able to enjoy VHS-quality or better with
VCR-like control (pause, rewind, stop).
* * *
"Entertainment on-demand is perhaps the most visible example of the power of
Enron's broadband applications.... [W]e have put together the 'killer app' for the
entertainment industry," said Enron CEO Kenneth L. Lay.
* * *
We believe that this major and unique contract for its broadband service is a most
promising and potentially rewarding one for Enron, and should go a long way to
increasing the recognition its for broadband services, which is well deserved.
* * *
We reiterate our "Buy" recommendation on the ENE common stock and our 12-
18 month $96 target price ....
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