Expectations are running very high for Palm Inc. (Nasdaq: PALM) given the early success of its Pre handheld, and they just got a bit higher.
RBC Capital Markets just raised its price target on PALM shares to $18 from $14 ahead of earnings scheduled for release tomorrow. It’s a price target chance that may carry some weight, given that analyst Mike Abramsky is one of the top names following the company. He estimates total sales to date of 150,000 Pre units, up from his previous estimate of 120,000. Demand for Pres remains strong, and inventory is still low.
Abramsky also notes that more Pre models are on the way. He anticipates Palm will release a smaller $99 device before the end of the fiscal year, and more devices in calendar 2010.
The biggest negative that may be found in PALM right now — one of the only ones — is the degree of positive sentiment. PALM shares are among the Nasdaq’s fastest-rising momentum names since April. And analyst sentiment for the stock has rocketed from near rock-bottom levels at the beginning of the year. — Mike Tarsala