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[Keyser Soze]

9:21AM Covad Comms started with a Strong Buy at Needham; target $10 (COVD) 4.09: Needham initiates coverage of Covad (OTC BB: COVD.OB) with a Strong Buy rating and $10 target; firm sees substantial acceleration in the co's net adds and revs, aided by additional state launches by the IXC's (such as yesterday's 4-state DSL expansion by T), new contract wins, potential acquisitions, mkt expansion, and a possible Wi-Fi play; near-term catalysts include EBITDA inflection this winter, free cash flow-positive in 2004, and EPS-positive in 2005, which should prove the viability of the co's model and result in a substantially higher valuation.