Shares of Digital Island (Nasdaq: ISLD), which provides a global delivery network for online businesses, climbed 2 to 111 on Monday after Bear Stearns reiterated its buy rating on the company and gave the stock a $200 price target. Bear Stearns was the lead underwriter for Digital Island’s initial public offering last June. On Friday, Lehman Brothers, which was a co-manager for Digital Island’s IPO, started coverage of the company with a buy rating.
Last Thursday, Digital Island, which is competing with leading content delivery company Akamai Technologies, announced that it will deploy Apple’s QuickTime within its content delivery network of more than 6,000 servers worldwide.
The company also announced the completion of a secondary offering of five million shares of stock at $107 per share.