BancBoston Robertson Stephens Initiates Coverage of DMH
19 April 1999
BancBoston Robertson Stephens Initiates Coverage of DMH with a Buy Rating
SAN FRANCISCO, April 19 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior consumer products analyst Cynthia
Hope Hatstadt today initiated coverage of Ducati Motor with a Buy
rating. Ducati is a premier Italian manufacturer of sportbike motorcycles,
with a worldwide market share of almost 7 percent in 1998, up from 4 percent
in 1996.
"We are initiating coverage of Ducati with a Buy rating, with a $40-$43
price target. The company is the premium niche player in the growing
sportbike industry," said Hatstadt. "We are establishing our 1999 sales and
EBITDA forecasts of $323 million and $56.4 million, respectively, and our 2000
forecasts of $375 million and $66 million, respectively, representing roughly
15 percent top-line growth and 18 percent EBITDA growth.
"The company has never been stronger due to the successful turnaround by
new management. Management has rebuilt the company's product line,
rationalized its distribution channel, streamlined its production process and
strengthened its sales/marketing strategy to broaden the brand's appeal," said
Hatstadt. "In addition, Ducati's association with the racing circuit is a
critical part of its appeal to motorcycle enthusiasts."
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
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