So says Cowen, an analyst company who has just initiated coverage of Palm.
Cowen believes Palm will outperform the market, with shares appreciating >30% vs. the market over the next 12 months. Two catalysts were likely to initiate this boost in value:
1) the once-aging Treo smartphone line-up is in the middle of a refresh based on the Windows Mobile 6.1 OS and
2) a new Palm OS should provide increased product differentiation by the end of FY09 (May).
The recent sale of smartphone companies Danger, sold to Microsoft for $500 million,Â and E-Ten, sold to Acer for $291 million,Â provide the foundation of firm’s valuation framework.