First Albany Keeps 'Buy' on FindWhat.com

Analyst Youssef Squali says an advertising deal with Verizon's Superpages.com links FindWhat with the expanding local search market

First Albany reiterated its buy rating on online-advertising services company FindWhat.com (FWHT ).

Analyst Youssef Squali says FindWhat.com signed a private-label contract with Verizon Information Services -- Verizon's yellow-pages unit, the operator of online-directory Web site Superpages.com. Squali says the deal is very positive as it links FindWhat.com to a key player in the red-hot area of a local search. While the terms aren't disclosed, Squali expects the deal to generate incremental revenue and profit in 2004.

He notes the deal is structured as a licensing and revenue-sharing pact, whereby the company's technology and infrastructure supports Superpages.com's advertising services. Squali maintains the 50 cents 2003 and 70 cents 2004 earnings per share estimates. He has a $22 target.

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