Bear Stearns: Palm Benefiting From RIM's Court Woes (PALM, RIMM)

Includes: BB, PALM

If you can't run your BlackBerry, better get a Treo 650 (pictured) -- such is the current thinking in large financial firms, according to Bear Stearns analyst Andrew Neff. Neff, in a note to clients, sees an opportunity for Palm (ticker: PALM) to take advantage of Research in Motion's (ticker: RIMM) fierce patent battle. Excerpt:

PALM Treo demand improving on Wall Street on RIMM injunction concerns. Based on our checks with Wall Street IT organizations, PALM Treo (in conjunction with Good Technology) is emerging as the leading alternative solution to RIMM as part of contingency plans for the potential injunction against RIMM. As such, our checks also indicate accelerating demand for PALM Treo since the US District Court’s November 30th decision, which increased the likelihood of an injunction against RIMM. Accordingly, we see the ongoing legal uncertainty as a short-term positive for PALM (though no impact on PALM’s November-quarter results) and a near-term negative for RIMM, although this situation could reverse quickly if RIMM settles or the US District Court rules favorably for RIMM.

Recognize, however, that an injunction against RIM wouldn't be all positive for PALM -- as we reported in October, Palm planned to launch a smartphone that ran BlackBerry software.