Palm: Even The Bears Were Impressed

Palm (PALM) shares have further extended their huge rally following their introduction at CES of the new Palm Web OS and the Palm Pre smartphone, thanks in part to upgrades of the stock from the formerly bearish analysts at Citigroup and Deutsche Bank . Citigroup’s Jim Suva this morning raised his rating on the stock to Hold from Sell, upping his price target to $6.50, from $1.20, asserting that the Pre “has potential to be an iconic handset.” He says that the Pre “looks like a game changer,” and that a Sell rating is no longer warranted. Deutsche Bank’s Jonathan Goldberg this morning likewise increased his rating on the stock to Hold from Sell, and raised his price target to $6, from $1. “We are favorably impressed with the new device and more importantly with the new WebOS,” he writes. “We think the focus has not shifted from their mere survival to execution.” He thinks Palm can sell 1 million units of the Pre in 2009 ... (link)