Pacific Growth Upgrades Ask Jeeves to 'Overweight'
Pacific Growth upgraded Ask Jeeves (ASKJ ) to overweight from equal-weight.
Analyst Derek Brown says he's more optimistic on the Internet-search portal after talking with industry participants, who point to continued strength in the paid-search market during the fourth quarter and into 2004. Brown thinks execution at Ask Jeeves has been solid this quarter, and says the company's sizable search traffic and proven technology platform are valuable assets in a world of relative scarcity. Furthermore, he sees changes in the competitive landscape which have improved Ask Jeeves' risk/reward profile.
Brown raised the 37 cents 2003 earnings per share estimate to 38 cents, upped the 55 cents 2004 estimate to 58, and raised the 70 cents 2005 estimate to 75 cents.