Wallstreet Bullish on Handspring

After spending most of June and early July under $28, the price for Handspring stock has recently shot up to $46 at yesterday's close. This run-up started when the quiet period after the IPO ended. This allows company management and its IPO investment bankers to talk-up the stock., which Handspring's underwriters are taking full advantage of.

Credit Suisse First Boston, the lead underwriter for Handspring's IPO, called the stock a "buy". U.S. Bancorp Piper Jaffray, another underwriter for the deal, gave it a "strong buy". The two other underwriters, Merrill Lynch and Donaldson Lufkin & Jenrette, rated the stock "long term buy" and "buy," respectively.

Analyst Sam May of U.S. Bancorp Piper Jaffray set a a target price of $90 a share on the stock, which is based on a 17 times multiple of calendar 2001 revenues of $507 million.

"Handspring has strategically positioned its product line to exploit a market that we believe is going to witness incredible growth over the next three to five years,'' May said.

Thanks to ZDnet Investor.

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