Palm shares rise after Morgan Stanley report

Analyst Ehud Gelblum said Palm's unit shipments and subscriber additions should rise after the company's exclusive deal with Sprint Nextel Corp expires and opens the way for new deals with other wireless companies as well as more support among developers for its webOS software.

Gelblum set Palm's price target at $14. The shares, which had fallen around 12 percent in the past month partly due to disappointing sales of its new Pre phone, rose 49 cents to
$10.81.

Morgan Stanley also gave an overweight recommendation on shares in chipmaker Qualcomm Inc and BlackBerry maker Research in Motion , although it rated cell phone maker Motorola Inc as underweight.

Qualcomm shares rose 1.7 percent to $47.74 and RIM rose 0.56 percent to $66.30, while Motorola shares rose 2.26 percent to $8.15.

(Reporting by Ritsuko Ando; Editing by Derek Caney)