RBC: Palm Could Be Worth 10 to 14 in a Deal

And the $PALM saga continues this morning with a bold call out of RBC saying the company could be worth anywhere from 10 to 14 in a takeover now that it’s being shopped around.  RBC is way above the consensus view that Palm is only worth $6-$7 primarily due to the potential strategic value of the WebOS operating system that may be coveted.  Analyst Mike Abramsky sees Hewlett Packard ($HPQ) as the ideal acquirer.

It should be noted that Abramsky has been dead wrong on Palm (read: bullish), but this outlier is interesting nonetheless.  As we dicsussed on my show Stock Wars Wednesday night, there is an activist fund, Harbinger Capital Partners, that has just disclosed a 10% stake in Palm.  A piece of research like this is probably music to their ears as they seek to make sure that the company doesn’t get sold for a pittance.

The phenomenal website Notable Calls has the rest of the details of this report…


Palm: See takeout value around $10-14/sh – RBC Capital (Notable Calls)

Full Disclosure: I currently have no position in PALM, long or short, for either client or personal accounts.

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