UPDATE: National Alliance Securities Initiates Coverage on Vonage Holdings Corp. with Buy Rating, $4.10 PT on Good Upside Potential

In a report published Friday, National Alliance Securities analyst Robert G. Routh initiated coverage on

with a Buy rating and $4.10 price target. In the report, National Alliance Securities noted, “We are initiating coverage of Vonage Holdings Corp. (VG) with a 'Buy' rating and fair public market value of $4.10 per fully diluted share (priced as of the close 11/13/2013). Our fair value represents upside of 21.5% from present levels and takes into account completion of the $100 million share repurchase plan by 2015 as well as the acquisition of Vocalcity Inc. Currently our models show VG shares trading at 3.90x 2012 actual adjusted EBITDA and 5.00x 2013E adjusted EBITDA. At our fair value VG shares would trade at 5.28x our estimated 2014 adjusted EBITDA which includes a full year of Vocalcity (Vonage Business Solutions). Remember, stocks should now be trading on 2014 numbers as we are in mid-November of 2013.” Vonage Holdings Corp. closed on Thursday at $3.30.