Time once again to check in with Vonage, the Internet telephony company that recently completed one of the most disastrous IPOs in recent history. A new report from Piper Jaffray points to a list of
potential competitive pitfalls for the VoIP provider. Cable operators, regional phone companies, and other alternative service providers are all trying to enter the same market. The investment firm
says all of this bodes poorly for Vonage, which will likely face declining margins due to customer defection and increased pricing pressure. Piper Jaffray issued the stock a "market perform" rating
and a $9 target price, saying that near-term growth is possible even though the company is still reeling from its IPO mess. Earlier in the week, Citigroup--one of the company's underwriters--issued a
"hold" rating with an $11 target price. To date, Vonage shares are down 50 percent from its IPO price of $17.
Read the whole story at Forbes.com »