Elevation Partners Keeping the Faith with Palm

Elevation Partners co-founder Roger McNanmee said in a statement that his firm has no plans to exit its investment in Palm (PALM). McNamee, who is a member of the Palm board, said he is “very pleased” with the progress the company is making.

As noted in a post earlier today, Global Crown Capital analyst Pablo Perez-Fernandez wrote in a research note Monday that Elevation might be looking for a way out of its 25% stake in the company, for which it paid $325 million. The company’s market cap is now just $243 million. Perez-Fernandez today downgraded the stock to Underweight from Neutral, setting a price target of $1.50.

Here is McNamee’s statement:

Elevation Partners is very pleased with the progress Ed Colligan, Jon Rubinstein and the entire Palm team are making. The Company’s product pipeline, including a next generation operating system due out soon and a new device targeted for the first half of 2009, excite us enormously. Elevation supports Palm in taking the difficult but necessary steps required to migrate from legacy products. We have a very long-term investment horizon and have no plans to exit our investment in Palm.