Palm: Kaufman Sets Hold Rating; Many Possible Suitors
Kaufman Bros. analyst Shaw Wu this morning launched coverage of Palm (PALM) with a Hold rating and a $16 price target. He writes in a research note that the company is well-positioned in the smart phone sector with its WebOS software, but that the valuation is expensive; he also is concerned about ongoing operating losses and a weak balance sheet. “While we believe PALM is well-positioned with its webOS software and highly integrated hardware,” he writes, “we are concerned about its balance sheet and continued operating losses over the next four quarters as we don’t model profitability until the August 2010 quarter.”
