A Little Good News for Palm

Palm (PALM) shares got the rare bit of good news this morning, as Standard & Poor’s analyst Todd Rosenbluth raised his rating on the handset maker to Hold from Sell on a valuation basis.

Rosenbluth notes that the stock through yesterday’s close was down 18% since the company reported earnings June 26 (see earnings call transcript). “We are still concerned about how PALM will succeed in a competitive smartphone market as the U.S. economy slows, and we believe increased marketing efforts will weight on PALM’s profitability,” he writes.

But Rosenbluth contends the current stock price reflects those risks, as well as the potential rewards as sales pick up as the new Centro gains traction and the company rolls out additional new phones.

Rosenbluth maintains his $5.50 price target on the stock.

Comments

[fatcat]

Palm and Motorolla could get married...what have they got to lose?