Polycom Exploits Aversion to Business Travel

Polycom (PLCM Quote), the California-based videoconferencing outfit, got a nice upgrade Tuesday from Pacific Growth Equities, and it responded with an almost 6% jump to close at $23.62. It continued to rally Wednesday, gaining more than 8% by midday to trade lately at about $25.53.

In upgrading Polycom from buy to strong buy based on current valuation, Pacific Growth said that Polycom looks good to hit its first-quarter guidance, and it expects the company to reach a price target of $45. (Pacific Growth has not been an underwriter for Polycom, but has worked with the company on other issues.)

If that proves true, that's quite a move from the stock's current level -- and a heck of a comeback for a company whose share price went almost straight up from near a buck in early 1997 to nearly $70 in fall 2000 and then fell even more sharply to $11 and change about a year ago. ...