Morgan Stanley analyst Todd Scott initiated coverage of Internet-service provider United Online Inc. with a "overweight" rating and a year-end 2003 price target of $18, fueled by the company's recent agreement to provide service over Comcast Corp.'s high-speed data network. United Online, which provides service under the NetZero and Juno names, has 1.6 million paid subscribers and 3.3 million free dial-up customers. United launched high-speed service over Comcast's network in Nashville, Tenn., and Indianapolis in May. United will resell the Comcast service, and the MSO assumes all operating costs.
