Shares of palmOne have risen over 8 percent today after an analyst upgraded the company’s stock.
J.P. Morgan analyst Paul Coster said that he thinks that investors are being overly pessimistic about the risks involved in palmOne’s launch of the next-generation Treo, which he says will happen on October 25.
“We believe [PalmOne] is trading at an attractive valuation level, and is now overly discounting the risks associated with the new Treo launch,” Coster said.
Coster went on to predict that another high-profile wireless carrier in Europe will begin carrying Treo smartphones by the end of the year, accounting for an additional 50,000 Treos shipped.
More information on the upcoming Treo model is available in this article.
What Goes Up…
After building during the middle part of this year, palmOne’s share price has dropped off in the last few months.
Despite the success of the Treo 600, investors have been spooked by the release of RIM’s first smartphone and word that Nokia is working on a device similar to the Treo. Nevertheless, at $29.13, the stock is still trading well above its 52-week low of $9.53.