Shares in Absolute Software Up on Qualcomm Deal News

Absolute Software Inc. (ALSWF.PK) announced a deal with Qualcomm Inc. (QCOM) to adapt Computrace, the company's firmware-based computer theft recovery solution to work with Qualcomm's Gobi mobile Internet and GPS solution platform. Shares in Absolute were up 7% or C$.88 to C$13.62.

Analsyts reacted well to the news, including Canaccord Adams analyst Peter Misek who reiterated his "buy" recommendation, and C$20 price target on the stock.

In a note to clients Mr. Misek wrote:

We believe this enhanced functionality is a significant upgrade to Computrace's performance. The ability to offer real-time access to lost or stolen laptops is a material feature set improvement, which should expand Absolute's addressable market, particularly with large corporate accounts and governments.

Versant analyst Tom Liston said Absolute is working with all of the top tier computing and communications vendors, and remain comfortable that the company will meet or exceed its guidance of 6 million subscribers by June 2009. He maintained his "strong buy" recommendation and C$25 target price.

Absolute will demonstrate the new service for Qualcomm at the CTIA Wireless Show April 1, 2 & 3.