Shares of Internet incubator Internet Capital Group, which focuses on business-to-business e-commerce sites, climbed more than 10 percent on Monday, gaining 5-3/8 to 58-78 after receiving favorable coverage from two investment firms that participated in its recent initial public offering. Henry Blodget, the influential analyst for Merrill Lynch, gave Internet Capital Group a near-term rating of accumulate and a long-term rating of buy.
The difference between accumulate and buy probably isn’t clear to many investors, but Blodget’s two-year price target of $125 for Internet Capital Group is obviously a sign of serious bullishness. Blodget is well-known for his bold targets, and it’s clear that a lot of Wall Street pays serious attention every time he speaks, although some have questioned his aggressiveness.
Internet Capital Group also received a buy rating from Deutsche Banc Alex. Brown.