The bank believes the migration project will add $50-100 million a year to Amdocs's revenue.
At the end of last week, Deutsche Bank published an optimistic report on Amdocs. The bank maintains its "Buy" recommendation for Amdocs shares and its $34 target price. This compares with a closing price of $25.15 for Amdocs on Friday, a price that gives the company a market cap of $5.18 billion.
The report followed a conference call in which US wireless giant Cingular gave details of its plans for billing systems after the acquisition of AT&T Wireless. Cingular said that, before existing customers migrate, all new subscribers to either system would be processed on the Cingular platform.
Deutsche Bank analysts Thomas Ernst and Josep Bori say, "Our checks have revealed Cingular to be already actively engaged with Amdocs project work. We believe that over the next 12 to 18 months, Amdocs will provide a central part of the implementation and integration services and longer term maintenance and support revenue from the full subscriber base, adding an incremental $50-100 million per year as soon as the migration projects begin. While we anticipated this to be the case, the immediate timing is a positive surprise."
Published by Globes [online] - www.globes.co.il - on November 1, 2004