Analyst: Linux Profits by Novell-Microsoft Deal

By Steven Vaughan-Nichols  |  Posted 2007-01-19 Print this article Print

An investment bank sees the Novell-Microsoft deal as positive for Novell—and for enterprise Linux. (Linux-Watch)

Its no secret that many people in the Linux community dislike Novells recent Microsoft partnership. To some analysts, though, the deal is a feather in Novells market cap. Open-source activist Bruce Perens started an online petition to protest the deal. A group of people launched a Web site with a self-explanatory name, Boycott Novell. And, leading Samba developer Jeremy Allison left Novell because of the patent part of the Novell-Microsoft deal.
Could Novell be planning to buy XenSource or Altiris? Click here to read more.
At least one independent institutional investment bank, First Albany, likes the deal, however. It likes it a lot. On Jan. 17, First Albanys managing director of equity research, Mark Murphy, wrote a research note to the banks customers stating that First Albany was "upgrading our rating on the shares of NOVL [Novell] to Buy from Neutral." By the firms rating system a Buy recommendation means that it expects the stock to have a potential return of 10 to 20 percent. Specifically, the investment bank believes that Novell will reach a price of $9 per share. For the last six months, the stock has been hovering around $6.30 per share. Read the full story on Linux-Watch: Analyst Likes the Novell-Microsoft Deal Check out eWEEK.coms for the latest open-source news, reviews and analysis.
Steven J. Vaughan-Nichols is editor at large for Ziff Davis Enterprise. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.

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