Palm Stock On The Rise

We don’t typically report on the ebb and flow of Palm’s stock, but today we’re seeing some serious spikes in activity. Typically, stocks respond positively or negatively to announcements – new phones, competitors new phones, etc. Nothing we’ve seen suggests any new product announcements are forthcoming today, so why is Palm rising? We’re certainly not qualified to say why, but it’s encouraging to see the company’s chart moving in the positive direction.

Update: According to TradingMarkets, the activity is based upon rumors of Palm being a takeover target, with Lenovo Group being the potential suitor.


Palm Shares Rise, Analyst Suggests Takeover Possibility

Palm shares surged today on comments by Jonathon Goldberg, an analyst for Deutsche Bank. Goldberg raised his target price for the stock citing strong potential for webOS devices and a “takeover possibility“. From what’s been reported, there is absolutely no evidence that a takeover will happen in the foreseeable future. Goldberg simply believes the company is “a potential target” for a larger company (Dell, Nokia) looking to break in or expand their presence in the mobile market.“As the only standalone entity, we think there is a real potential for Palm to be acquired in the next two years,” Goldberg wrote.

“We think Palm has created a valuable asset in its webOS. If they can grow their installed base of users and keep the carrier momentum going, this value should become more apparent,” continued Goldberg.

As for device sales, Goldberg believes Palm can sell 600,000 units into Verizon in this quarter alone. He also speculates the Palm’s App Catalog could outpace RIM and Android by the end of this year.

[via WSJ]

Analyst Predicts Bright Future for Palm

Vivek Arya, an analyst for Bank of America, issued a research note today suggesting that Palm was poised for growth in 2010. Arya believes the Palm Pixi will be another catalyst to Palm’s comeback and next year’s arrival of webOS devices on Verizon (and other tier 1 networks) will help the company rebound.


Despite increasing smartphone competition, Palm can maintain differentiation and remains well-positioned to launch its products with multiple new Tier-1 carriers in early 2010 by which time it should have a robust apps catalog,” Arya wrote. “While we expect the stock to remain volatile, the recent sell-off creates an interesting buying opportunity, in our opinion, for a company with an attractive platform, selling into a high-growth market, and at a compelling valuation.”

Arya points to the growing App Catalog and Palm’s new URL application distribution that will see more developers being attracted to webOS.

[via All Things D]