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.''
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