Palm "neutral," target price raised

03/23/07 - Credit Suisse

NEW YORK, March 23 (newratings.com) - Analysts at Credit Suisse maintain their "neutral" rating on Palm Inc (PALM), while raising their estimates for the company. The target price has been raised from $14 to $16.

In a research note published this morning, the analysts mention that the company has posted robust F3Q07 results, with adjusted pro forma EPS excluding options ahead of the estimates and the consensus. According to the analysts, Palm is expected to continue to benefit from the international expansion as well as rapid market growth for smartphone. The pro forma EPS estimates for FY07 and FY08 have been raised from $0.60 to $0.67 and from $0.74 to $0.81, respectively.