Palm Stock Continues Climb on New Upgrade
Even on a largely down day for the Dow, Palm's stock is surpassing its 52 week high and is now trading above $10 for the first time since the Elevation recapitalization. Palm shares have continued to rise since the unveiling of the Pre back in January. Despite a number of claims that PALM is fully valued amid all of the hype and expectations for the Pre, the stock continues to receive analyst upgrades.
Today the stock obtained another endorsement from Bank of America/Merrill Lynch analyst Vivek Arya who changed his rating to buy from hold. Vivek also upped his target price to $14, from $8.70 and says "[WallStreet] underestimates Sprint's commitment to Palm's success and [the] strength of the [the] underlying smartphone market." He thinks Palm could ship up to 2.5 million Pre smartphones in the 2009 second half; for 2010, he thinks the company could ship as many as 6.2 million phones." (via Tech Trader Daily)
At the time of publication PALM is trading at 10.05, up ~2% on the day, while the Dow is down ~254.