Analyst Actions: ABN Amro Starts Palm at Buy Before It Trades

Author:
Publish date:

In an unusual move, ABN Amro initiated coverage of 3Com (COMS) spinoff Palm (PALM) , which hasn't started trading yet. The firm started the hotly anticipated handheld computing outfit at buy, with a price target of 90.

"We believe Palm could become a $50 billion company in six months," ABN Amro analyst Jonathan Ross reportedly said in a research note. "This represents 42 times calendar year 2000 revenues."

Palm's 23 million-share IPO was priced late yesterday at $38 a share, above the expected range of $30 to $32.

An initiation on the first day of trading is highly unusual. Firms that underwrite an IPO have a 25-day post-IPO quiet period during which they aren't allowed to comment on the new issue, and non-underwriters generally reserve comment until the end of the quiet period as well. ABN Amro isn't an underwriter on the Palm deal and decided to forge ahead.

Deutsche Banc Alex. Brown

started coverage of

Bed Bath & Beyond

(BBBY) - Get Report

with a strong buy rating.

DB Alex. Brown raised

Bristol-Myers

(BMY) - Get Report

to buy from market perform.

DB Alex. Brown initiated coverage of

Cost Plus

(CPWM)

with a strong buy rating.

Thomas Weisel Partners

analyst Perry Boyle increased estimates on

DoubleClick

(DCLK)

to a loss of 9 cents from a loss of 12 cents a share in the first quarter, and to earnings of 10 cents from an expected loss of 8 cents for the year.

Warburg Dillon Read

initiated coverage of

EMC

(EMC)

with a buy rating.

SG Cowen

said it started

Firepond

(FIRE)

with a buy rating and set a price target of 125.

Merrill Lynch

upgraded

Health Management Associates

(HMA)

to intermediate-term buy from accumulate.

Credit Suisse First Boston

said it raised

HNC Software's

(HNCS)

target price to 175 from 125.

Merrill initiated coverage of

Precision Drilling

(PDS) - Get Report

with intermediate-term and long-term buy ratings and set a 12-month price target on the stock of $45.

DB Alex. Brown upgraded

Proxicom

(PXCM)

to strong buy from buy.

Thomas Weisel analyst Eric Ross raised the price target on

Veeco Instruments

(VECO) - Get Report

to 130 from 95.

Morgan Stanley Dean Witter

upgraded

Wal-Mart

(WMT) - Get Report

to buy from outperform and did the same for

Costco

(COST) - Get Report

.

DB Alex. Brown started coverage of

Williams-Sonoma

(WSM) - Get Report

with a buy rating and set a 37 price target on the stock.