Shares of Mortgage.com (Nasdaq: MDCM) took off in predictable post-quiet period style Wednesday as another analyst started bullish coverage on the online mortgage site.
Mortgage.com shares were up 15 percent, or 2 3/8 to 18 1/16, slightly below the high of 22 3/4 reached just after the company went public in August.
The stock didn't respond after Credit Suisse First Boston said Tuesday it started coverage of Mortgage.com Inc. with a "buy" rating. Credit Suisse First Boston was the lead underwriter of Mortgage.com's IPO.
But the latest "buy" rating did the trick. U.S. Bancorp Piper Jaffray, a co-manager for the IPO, said on Wednesday it started coverage on shares of Mortgage.Com Inc. with a "strong buy" and a $28 per share price target.
The company's unique business-to-business model should provide the Internet mortgage player with larger market opportunity and revenue diversification, analyst Stephen Franco wrote in a report.
Reuters contributed to this report.