don't sell just yet.
----- Forwarded by Jeff Dasovich/NA/Enron on 03/15/2001 05:08 PM -----

	Margo Reyna
	03/15/2001 04:56 PM
		 
		 To: Sue Nord/NA/Enron@Enron, Scott Bolton/Enron Communications@Enron 
Communications, Lara Leibman/Enron Communications@Enron Communications, 
Donald Lassere/Enron Communications@Enron Communications, Mona L 
Petrochko/NA/Enron@Enron, Barbara A Hueter/NA/Enron@Enron, Jeff 
Dasovich/NA/Enron@Enron, Susan M Landwehr/NA/Enron@Enron, Marchris 
Robinson/NA/Enron@Enron, Ricardo Charvel/NA/Enron@Enron, Stephen D 
Burns/Corp/Enron@ENRON, Xi Xi/Enron Communications@Enron Communications, 
Allison Navin/Corp/Enron@ENRON, John 
Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eric Benson/NA/Enron@ENRON, 
Karen Huang/Enron Communications@Enron Communications, Matthew 
Jachimiak/HOU/ECT@ECT, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: 
		 Subject: Telecom Services: Broadband Services: USA:    Analysts still 
bullish on Enron broadband unit ...

Margo Reyna
Regulatory Analyst
Enron Corp., Government Affairs
Phone:  713-853-9191

----- Forwarded by Margo Reyna/NA/Enron on 03/15/2001 04:56 PM -----

	djcustomclips@djinteractive.com
	03/15/2001 04:54 PM
	Please respond to nobody
		 
		 To: 123363@WCTOPICS.djnr.com
		 cc: 
		 Subject: Telecom Services: Broadband Services: USA:    Analysts still 
bullish on Enron broadband unit ...



USA: Analysts still bullish on Enron broadband unit prospects. 
By C. Bryson Hull 
  
03/15/2001 
Reuters English News Service 
(C) Reuters Limited 2001. 
HOUSTON, March 15 (Reuters) - Wall Street took a hard look at Enron Corp.'s 
content delivery plans this week after it ended its video-on-demand deal with 
Blockbuster Inc. , but remained largely unfazed by the failure of the 
flagship deal, analysts said on Thursday.
On balance, most analysts viewed the busted 20-year exclusive agreement as 
disappointing, but by no means a fatal blow to Enron Broadband Services' 
(EBS) budding content delivery segment. 
Most reiterated buy or strong buy ratings for the Houston company and 
maintained bullish earnings targets for the Enron Broadband Services division.
But all are awaiting an indication of how Enron will reconfigure the content 
delivery initiative.
"I think Blockbuster represented kind of an anchor tenant for the broadband 
business, so they have lost a contract that was important," said Jeff 
Dietert, an analyst with Houston investment house Simmons and Co.
Now EBS will have to pursue smaller contracts to make up the loss, which 
could mean a longer road to create as big a book of business, Dietert said.
EBS executives have said they expect to have $1 billion in total contracted 
business by the end of 2001.
CHASING MORE CONTRACTS TO FILL VOID
EBS Chairman and Chief Executive Officer Kenneth Rice on Friday said his 
division is already pursuing deals with content providers to send on-demand 
games, movies, music and television over the Enron network.
UBS Warburg analyst Ronald Barone, in a research note released Monday, said 
he still believes Enron will hit the $1 billion mark in 2001.
"Though this announcement is clearly a disappointment we have a great deal of 
confidence in the judgment of Enron's senior management and of the upside 
associated with this business," Barone wrote.
His report reiterated a strong buy recommendation and 12-month stock price 
target of $102 a share, with EBS accounting for $25 of that.
One analyst remained skeptical of the content delivery plans.
"Where they go from here is one of things they have to tell the market in a 
convincing fashion," said Commerzbank Securities analyst Andre Meade, who 
raised Enron to accumulate from hold on Thursday.
But he also cut earnings targets for the EBS segment to $8.40/share because 
of the failed Blockbuster deal.
Heady cash-flow projections figured heavily in Enron's guidance for 2001, 
which called for a stock price of $126, of which EBS would account for $40, 
Meade said.
Meade, whose company initiated coverage on Enron in late May 2000, had been 
alone among Enron analysts in keeping a hold rating on the stock.
Merrill Lynch analyst Donato Eassey on Monday released a note reiterating his 
buy recommendation with a $99/share price target.
"While the separation from such a high-profile name is disappointing, we do 
not view this as negative," Eassey wrote. "This could in fact actually 
accelerate Enron's content delivery strategy."
Eassey pointed out that Enron and Blockbuster's trial in Seattle, Salt Lake 
City, New York and Portland, Ore., proved Enron can deliver movies on demand.
That gives them a track record to show to potential customers like movie 
studios and other entertainment concerns that want to provide content 
directly through their Web sites, he said.
Enron's stock closed on Thursday at $66.53, up $3.78, compared with its 
52-week range of $59.99 to $90.5626. 

Folder Name: Telecom Services: Broadband Services 
Relevance Score on Scale of 100: 80

______________________________________________________________________ 
To review or revise your folder, visit Dow Jones CustomClips or contact Dow 
Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone 
at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact 
your local sales representative.) 
______________________________________________________________________ 
Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved