Rises on Initiation Palm (PALM) was up 3.7% in midafternoon after J.P. Morgan Chase analyst Paul Coster began coverage with a long-term buy rating and a $10 price target.

Coster said Palm faces several promising opportunities and has a brand and operating system that offer "excellent potential returns."

Coster also initiated Palm's rival,

Handspring

(HAND)

, assigning it a market perform rating and a $12 target. Handspring was up 1.2%.