Vonage's V-Phone – a USB-like device that turns any laptop into a Vonage phone – makes its Canadian debut today in downtown Toronto. Vonage shares, meanwhile, closed at $7.87 yesterday after touching a new low of $7.81 – 54% below the IPO price. It's interesting to see that analyst coverage of Vonage is expanding. UBS Securities recently initiated coverage with a “neutral” rating and a $10 target price, while CitiGroup initiated coverage with a 'hold” rating and an $11 target price. The target prices make you wonder how Vonage ever managed to sell the IPO at $17 a share. Someone did a great job selling investors on the prospects for Vonage and VoIP.
Can someone explain to me how you can call a stock a hold when your target is $11 and it is trading at less than $8? If it goes to your target then you will get a 40% return which is a big win in my books!
“Someone did a great job selling investors on the prospects for Vonage and VoIP”
yes, and the owners too!
Vonage, Vonage, Vonage…