S&P Upgrades Polycom (PLCM) From Hold to Buy

S&P upgraded video conference equipment provider, Polycom (NASDAQ: PLCM) from Hold to Buy, late yesterday. They are bullish on the prospects for video conferencing. They kept their target price at $32.

Here are a few quotes from the report:

“We think video communication solutions are gaining rapid acceptance among enterprises due to their compelling return on investment. We believe the addressable market for video conferencing equipment will be large enough to provide PLCM with strong growth opportunities even with increased competition from the likes of Cisco Systems and Avaya. Operationally, we believe sales execution and productivity are improving, following a recent sales force restructuring. We also view PLCM as a viable acquisition candidate. On relative analysis, we keep our 12-month target price at $32./A.Bensinger”