Palm (PALM) Shares Rallying as Analysts Gaining Confidence

November 11, 2009 11:15 AM EST

Palm (Nasdaq: PALM) shares are trading sharply higher this morning as we have several analysts out with seemingly bullish research notes on the company's stock. Shares of Palm most recently traded at $11.84, up 7.7% from yesterday's closing price. Notably, just 90 minutes into the trading session, the stock has already traded 7.1 million times, versus the stock's average daily volume of about 9.2 million shares.

First, following a recent meeting with management, BofA Merrill Lynch issued a very positive note on Palm earlier. The firm reiterated its Buy rating and $20 price target, which would represent potential upside of about 68%. BofA Merrill said the key takeaway from the meeting was: "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." The firm also notes Palm's recent sliding stock price (down 33% since the beginning of October), saying that the sell-off creates a promising buying opportunity.

Next, we have an analyst from boutique firm MKM Partners starting coverage on the stock with a Neutral rating and $11 price target. While the note is not necessarily bullish, it suggests that downside in the stock could be limited.

To see all the analyst action on shares of Palm, visit our Analyst Ratings page.

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