The stock of Net2Phone (Nasdaq: NTOP), which allows customers to make phone calls using the Internet, recorded its second consecutive strong trading session on Tuesday, gaining 6 to an all-time closing high of 53-1/8. This climb came one day after Net2Phone stock climbed 11-5/8 to 47-1/8.
Net2Phone’s quiet period ended Tuesday, as the company announced a distribution deal with Compaq. In addition, Hambrecht & Quist, the lead underwriter for Net2Phone’s initial public offering, initiated coverage of the stock with a buy rating. Co-manager Deutsche Banc Alex. Brown also gave Net2Phone a buy rating, and co-manager Bear Stearns gave it a rating of attractive.
The two-day climb in Net2Phone stock may have been a little overdone. After all, none of its IPO’s three underwriters gave it a strong buy rating. In fact, Net2Phone has already soared past Deutsche Banc Alex. Brown’s $52 price target.