Merrill Lynch Ups Amdocs' Price Target to $43

Amdocs in the cable/IPTV arms race is fighting on both sides, says bank

TheMarker
TheMarker
Send in e-mailSend in e-mail
TheMarker
TheMarker

Merrill Lynch earlier this week raised its 12-month price objective for Amdocs (NYSE: DOX) to $43, from $35.

Analysts Tal Liani and Stanley Kovler commented that the upgrade was based on three factors, one being the trend of consolidation among carriers, which could boost Amdocs' results beyond current expectations.

The second was the investment bank's professed growing confidence that Amdocs' operating margin will reach 20% by the year 2007.

The third: "We view Amdocs as a major beneficiary of the current arms-race between the telecom carriers and cable operators. We believe Amdocs is one of the better ways for investors to play the IPTC investment cycle," the bank continues.

Arms race? The point here, the investment bank explains, is that Amdocs is fighting on both sides. It is working on a billing system for Internet-powered television signals (IPTV) and has in fact started a pilot at AT&T. Also, buying DST positioned it to grow in the arch-rival cable sector, with its traditional billing and customer-relations management systems.

Its new price target is based on estimated earnings per share of $2.10 in 2007, and Amdocs' historical price/earnings ratio of 20.5.

Amdocs stock

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.

NOW: 40% OFF
Already signed up? LOG IN

ICYMI

הקלטות מעוז

Jewish Law Above All: Recordings Reveal Far-right MK's Plan to Turn Israel Into Theocracy

איתמר בן גביר

Why I’m Turning My Back on My Jewish Identity

Travelers looking at the Departures board at Ben Gurion Airport. The number of olim who later become yordim is unknown.

Down and Out: Why These New Immigrants Ended Up Leaving Israel

Beatrice Grannò and Simona Tabasco as Mia and Lucia in "The White Lotus."

The Reality Behind ‘The White Lotus’ Sex Work Fantasy

The Mossad hit team in Dubai. Exposed by dozens of security cameras

This ‘Dystopian’ Cyber Firm Could Have Saved Mossad Assassins From Exposure

מליאת הכנסת 28.12.22

Comeback Kid: How Netanyahu Took Back Power After 18 Months in Exile