Revisions By MKM Partners on PALM (PALM, CSCO, RIMM, HPQ)
April 14, 2010 12:03 PM
The analyst at MKM Partners is making a lot of revisions to Palm Inc. (NASDAQ: PALM) after rumors have been going around that it is putting itself up for sale. MKM Partners is lowering their 12 month price target on PALM to $7 from $10. EPS for 2011 are set at -$0.08 on sales of $1.5 billion.
Even with the price target and earnings estimates being lowered, MKM Partners continues to put a BUY recommendation on PALM. They believe that PALM will become important as the distribution network expands and its product line expands during the calendar year.
MKM Partners is speculating on who might be interested in buying PALM. They believe that the best suitor is HTC, as it has the best technological synergies and go-to-market strategy. Other potential buyers could be Cisco (NASDAQ: CSCO), Research in Motion (NASDAQ: RIMM) and Hewlett-Packard (NYSE: HPQ).
