Another Upgrade for PALM Plus Acquisition Talk | webOS Nation

Another Upgrade for PALM Plus Acquisition Talk

by Annie Latham Fri, 13 Mar 2009 1:56 pm EDT

When Palm’s stock (PALM) cracked $8 earlier in the day, it was clear that something was up… Sure enough, news of another upgrade was making the rounds, as RBC Capital moved PALM to an Outperform, or Buy, rating; up from Sector Perform.

Per a story posted at by Dan Gallagher, the broker cited the company's improved chances of re-building its smartphone business as the reason.  RBC Capital analyst, Mike Abramsky, in his note to investors, wrote:

"We now believe webOS has raised Palm's chances for Smartphone leadership, through: 1) competitive advantages; 2) multiple devices; 3) global distribution."

All Things Digital’s John Paczkowski talked about “the Holy Pre” in his post, noting that Abramsky “gave the device one hell of a write-up this morning.”
Paczkowski’s story also pointed out how Palm’s profile as an acquisition target has been raised.  He quoted Abramsky saying:

“Given Pre’s and webOS’s competitive advantages and the rising importance of the Smartphone market, we foresee Palm’s rising attractiveness as an acquisition candidate.” 

Companies listed as potential buyers include: RIM, Microsoft, Nokia, Samsung, LG, Sony Ericsson, Hewlett-Packard and Dell.

The 1-2 punch of upgrade and acquisition target certainly had its hands in moving the stock over $8.

RBC Capital joins Credit Suisse in giving PALM an Outperform rating.  Credit Suisse had initiated coverage in February with a target stock price of $11. Abramsky raised his price target on the stock to $12 from $5.  


Disclosure:  I do not own PALM stock.