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SBJ/March 8 - 14, 1999/No Topic Name
Analyst backs SportsLine
Published March 8, 1999
The coming NCAA basketball tournament should provide a big boost to SportsLine USA Inc.'s bottom line. And that event, plus CBS Corp.'s increasing commitment to the online sports site, should drive the company's stock price to record highs, predicted Lawrence Marcus, an electronic media analyst with BT Alex. Brown.
Marcus upgraded the stock last week from buy to a strong buy, helping to send the shares soaring. The stock rose 16 percent to more than $52 a share between the opening of trading Monday and midday Wednesday.
"We really like focused leaders in attractive categories, and sports is an attractive category," said Marcus. "It has mass appeal and so much media is directed at it."
The company could set page-view records during the NCAA tournament, Marcus said. Another bullish sign is that CBS Corp. is increasing it commitment to SportsLine and should own 27 percent of the company in the next few years, up from less than 20 percent now, Marcus said.