Pacific Growth Keeps 'Overweight' on J2 Global
Pacific Growth reiterates overweight on j2 Global Communications (JCOM ).
Analyst Joe Noel says he confirmed earlier Thursday that the company raised prices between $2.50 and $3.00 for all existing customers. He thinks these price hikes for the company's products will have a major impact on revenues and earnings.
Noel says his Street-high $1.01 fully taxed 2003 earnings per share estimate is now under review, but he sees a possible 10 cents benefit to earnings per share from the price hikes. Also, Noel notes j2 Global has about 327 paying phone numbers, and works off 80% gross margins. He says he'd be a strong buyer through the $50 a share level.