Stock Watch: Navisite Climbs on Expansion

Like Exodus, applications service provider NaviSite (Nasdaq: NAVI) has seen its stock rocket recently as investors have piled into Internet hosting companies. Shares of NaviSite climbed more than 6.3 percent on Wednesday, gaining 8-5/8 to 144-7/8 after the company had a grand opening ceremony for its East Coast data center in Andover, Massachusetts.

Also on Wednesday, Robertson Stephens, which was the lead underwriter for NaviSite’s October initial public offering, reiterated its buy rating on the stock. This development came one day after NaviSite announced the acquisition of ClickHear, a streaming media professional services company. Robertson Stephens senior e-commerce infrastructure services analyst Richard Juarez said he anticipates that “revenue from streaming services will contribute to higher overall gross margins” for NaviSite.

“We believe that NaviSite is emerging as a next generation TSP, or Total Solution Provider, for advanced managed infrastructure services,” Juarez continued. “In our opinion, the company has established itself as a category gorilla in this space.”

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