Robinson Humphreys Reiterates Buy Rating on EarthLink

Despite widening losses, ISP sees profits ahead

EarthLink Inc. (ELNK ) posted a $40.7 million Q4 EBITDA loss vs. a $37.6 million loss. Robinson Humphrey reiterated its buy rating on the stock.

Analyst Frank Gristina told S&P MarketScope the stock is strong on news that the company sees EBITDA profitability by the end of 2001. Secondly, he says broadband growth and significant customer additions are also bolstering investor faith. The analyst notes that the company's CFO on an analyst call said better carriage costs, further reduction of broadband installation costs, elimination of sales/marketing in non-effective areas and consolidation of acquisitions allow for EBITDA profitability.

Gristina says he is comfortable with the company's $35 to $60 million 2001 EBITDA burn estimate. He has a $15-$20 12-18 month target on EarthLink shares.

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