) to buy from neutral.
Analyst Sarah Mattson told S&P MarketScope she believes Mercator has addressed most of its execution problems related to its miss two quarters ago. Mattson says salesforce, compensation, and stock option issues appear to be resolved. She also notes tha Mercator's new CEO came on board two weeks ago. It seems salesforce morale has improved markedly, according to the analyst.
Mattson believes the stock trades at a discount relative to its comparables. She sees a $0.09 Q4 loss per share (to be reported 2/8) on $38M in revenues, and a $0.04 loss for 2001 on $161M in revenues. Mattson sees a return to profitability in mid-2001. She has a $15 12-month price target on the shares.