SCO Group Soars on Upgrade

Shares of SCO Group(SCOX Quote) skyrocketed to their highest level in nearly three years after a Wall Street brokerage firm initiated coverage of the stock with a buy rating.

Deutsche Bank analyst Brian Skiba accompanied his buy rating with a $45 price target, but cautioned that investors should consider an investment in SCO "extremely high risk and volatile." Shares of SCO propelled $5.13, or 33%, to $20.66 in recent trading.

Buying SCO is akin to buying a call option on the company's controversial lawsuit against IBM(IBM Quote), Skiba wrote in his research note. In its suit filed in March, SCO charged IBM with misappropriating SCO's UNIX source code in its Linux business. But the case is complicated because of how SCO ended up with rights to Unix and the code's relationship to Linux. ...