Buy Recommendation Issued On DAG Media by Wallstreet Research - Near-term Price Target $7 to $8 -


KEW GARDENS, N.Y., Dec. 1 /PRNewswire/ -- DAG Media, Inc. (Nasdaq: DAGM - news), the leading independent print and online publisher of yellow page directories servicing the New York metropolitan area, today reported that the Los-Angeles- based investment research firm Wallstreet Research issued a ``BUY'' recommendation on the stock.

The analyst report issued a near-term price target between $8 and $10 based on current price levels. ``Trading on the Nasdaq since May 1999, DAG Media has established itself as one of the most innovative and fastest growing niche-oriented publishers within the reference directory,'' stated the report.

The coverage of the Company identified DAG's product line with ``competitive features that offer an attractive product compared to Bell Atlantic.'' The report highlighted DAG's rapid penetration into growth markets, including Web and Internet directories, value-added referral services, and special interest directories. The report also noted, ``DAG targets Manhattan, a yellow page marketplace worth several hundred million dollars. Niche and specialized publishing adds to the aggregate revenue of the industry.''

Commenting on DAG's financial outlook, the Wallstreet Research report stated, ``DAG's gross margins consistently have been over 90% and are among the best in the industry ... EBITDA is an admirable 37%.

The report continued, ``Wallstreet Research has identified quantitative and qualitative criteria which indicate a very positive outlook for DAG's stock price and market position. Independent publishers are achieving double-digit growth. Management has achieved YTD and nine months sales growth of over 60% accompanied by an almost 50% increase of net income. DAG's strong balance sheet should sustain growth rates.''

The information presented in this report is not to be construed as an offer to sell, nor a solicitation of an offer to purchase, any securities referred to herein or otherwise. The information contained in this report is considered reliable, although it has been obtained from the company featured herein, and other sources, in each case without independent verification. Such information includes certain forward-looking statements issued by the company, which is not an indicator of actual performance. By accepting and reading this report, the reader hereby acknowledges that neither Wallstreet Research, nor any other affiliate thereof (including without limitation, Alan Stone & Company, LLC, to which the company featured herein has paid a consulting fee of five thousand dollars in cash in conjunction with the preparation and distribution of this report) makes any representation, either express or implied, as to the accuracy, completeness, fitness for a particular purpose or future results, of any statement contained herein. Neither Wallstreet Research, nor any of its officers, agents or affiliates, accepts any liability whatsoever for any statements made herein, including without limitation any liability for direct, consequential or special damages of any kind or nature.

 

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