Morgan Keegan & Co. analyst Murray Arenson started coverage of digital-media software developer Sonic Foundry Inc. with an "outperform" rating and a $15 price target.
Arenson said Sonic Foundry's main product, called Digital Media Asset Management, could be a key component in video service providers' efforts to offer digital-video and broadband technologies. Sonic already has an impressive customer list-including Home Box Office, MTV Networks and The Walt Disney Co.-and it should expand as these technologies are more fully deployed. Arenson expects Sonic Foundry to report revenue of $27.7 million this year, and to nearly double that to $50.9 million in 2001. The stock closed at $7.13 on Sept. 19, up $1.13.