While many Internet stocks struggled to regain ground on Wednesday, shares of NetObjects (Nasdaq: NETO), which develops end-to-end solutions for online businesses, saw a healthy rise of nearly 13 percent. NetObjects stock gained 1-1/16 to 9-7/16 after it received strong buy ratings from both BT Alex Brown and Piper Jaffray.
It should be noted that both of the recommendations come from firms that were underwriters for NetObject’s recent initial public offering. However, the strong buy ratings are still a big deal for NetObjects, which is struggling to return to its offering price. NetObjects went public at $12 a share on May 7 and closed its first day of trading at $13.
There is some concern that IBM, a major investor in and source of income for NetObjects, is trying to distance itself from the company, but NetObjects’ other clients include Microsoft, Netscape, Apple, Hewlett-Packard, Compaq, Sun Microsystems, Lotus, Novell and Mitsubishi. Maybe there’s actually something to the strong buy ratings.