Schroder Comment-SEE LAST LINE

USA: RESEARCH ALERT - Enron price target raised.

01/12/2000
Reuters English News Service
(C) Reuters Limited 2000.

NEW YORK, Jan 12 (Reuters) - Schroder & Co Inc said Wednesday it raised
Enron Corp's price target to $75 from $60 and cut
2000 earnings per share estimates.

- raised price target because "as the bandwidth trading market unfolds over
the next 12 months, we anticipate that an additional $15 of
value will be created for shareholders, with considerably greater value
possible as the market develops."

- cut 2000 estimates to $1.45 per share from $1.55 "due to fine-tuning."

- introduced 2001 EPS of $1.75.

- "Bandwidth trading will be a critical value creator in 2000. Enron has
built a critical base in the emerging bandwidth commodity
industry, which is poised to achieve rapid growth in 2000."

- "Bandwidth trading keys off Enron's market dominant skills developed in
trading electricity and natural gas. After executing the first
key bandwidth trade in 1999, Enron appears poised to begin posting rising
transaction volumes, establishing the credibility of this new
industry."

- "The ultimate value of bandwidth trading is likely to exceed the total
value of Enron's existing electricity and gas franchise."

((-New York Newsdesk (212) 859-1700)).