Just yesterday, Palm's falling revenue in Q3 had many wondering if it was all doom and gloom for the high-tech company, at least until the release of the Pre. However once again, the surging anticipation for the webOS handset has turned the heads of more analysts and caused a rebound in stock prices today. StreetInsider reports that after as much as a 15% drop last night, Palm has rallied back into positive territory today, up 3%, to $7.62 a share. The reason for the boost is likely from several factors:
- Citi analyst maintains a "Hold" rating on Palm Inc. at $6.50, citing the need for a European carrier announcement and the sales shortfall in February driving consensus sales & EPS expectations lower forthe company.
- Piper Jaffray, a Minneapolis investment bank, has upgraded its shares of Palm from Neutral to Buy, raising the target from $4 to $10. This is largely due to the upcoming Pre handset. "We believe several carriers plan to launch the Palm Pre, and despite the challenging macro environment we anticipate this unique product will resonate with consumers. We believe the ramp of Pre smartphones will result in a significant earnings recovery."
- CNBC reports that RBC Capital Market's wireless analyst Mike Abramsky raised his target from $3.50 to $5 a share. Abramsky stated that he had only today updated his price expectations in response to the Pre unveiling at CES in January.
- Barron's has a good summary of these and other factors that have affected the stock today.
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