Salomon Keeps 'Buy' on Gemstar-TV Guide
Salomon reiterates buy on Gemstar-TV Guide International (GMST ).
The interactive technology company agreed to acquire SkyMall Inc. for $3.00 in cash and stock.
Analyst Niraj Gupta says Gemstar is the best-positioned company in the nascent interactive television sector. He says the company had a good quarter, and all segments did better than expected. He says management noted that Q2 and early 3Q interactive programming guide (IPG) bookings were encouraging.
Gupta noted IPG business enjoys extraordinary barriers to entry. He thinks the company is well on its way to signing long-term distribution deals with additional operators, establishing itself as overwhelmingly dominant IPG provider. He sees a $1.19 2001 loss per share, and a $0.91 2002 loss. He has a $84 target.