Feeds

Freeserve shares fall on Goldman Sachs research note

Needs to justify high valuation

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Freeserve shares fell four pence to 202.5 pence yesterday on the back of an unhelpful Goldman Sachs research note. The investment bank kicked off its coverage of Freeserve, the British template for free ISPs by making it a "Market Performer" rating and has "a downside price target of 200 pence", financial newswire AFX reports. Goldman Sachs said Freeserve needed to justify its current high valuation by focusing on "gaining preferential broadband access, moving further into e-commerce, developing the brand and growing and scaling the organisation". Yes, but isn't Freeserve doing all these things, already? It's going to have to do a lot more than that to make it worth a couple of billion quid, As we've written on several occasions The Register also reckons the Freeserve market cap is too high -- it seems ludicrous for the market to value a non-paying Freeserve customer as the same as a fee-paying cable subscriber. On the upside, Freeserve has huge market presence (but how much more momentum), and very deep pockets, courtesy of its recent IPO. And it can always call on Dixons for off-the-shelf ecommerce anchor tenancies. ® Daily Net finance news from The Register

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.