WebEx Communications initiated with "market perform" - update

06/22/05 - Morgan Keegan

NEW YORK, June 22 (newratings.com) - Analysts at Morgan Keegan initiate coverage of WebEx Communications (WEBX) with a "market perform" rating.

In a research note published this morning, the analysts mention that the company has approximately 60% share in the web-conferencing market. WebEx is debt free and has a healthy balance sheet, with $207 million in cash/equivalents, the analysts say. According to Morgan Keegan, the company is likely to generate approximately $60-$70 million in free cash flows per annum over the next two-to-three years.