PALM Target Lowered to $2

Palm, Inc. (PALM) has been growing unit volume as a result of continued popularity of its Centro smartphones. The launch of its Treo 800W gives it a more competitive offering at the high-end of the market.

Although Palm has surprised us by posting better-than-expected results for the second quarter, the maturing lifecycle of Centro and product transition issues led the company to lower expectations for the third quarter. We continue to believe that Palm badly trails Research in Motion Limited (RIMM - Analyst Report) in the smartphone market and will not be able to effectively compete as an independent company.

We therefore lower our estimates for 2009 and 2010 and reiterate our Sell rating with a lower six-month price target of $2.00.

Anita Mohata contributed to this report.

Read the full analyst report on PALM.

Email	Print	Share	RSS	Rate Pos	Rate Neg	Comment

Loading Stories...

Related Content

RELATED ARTICLES ANALYST BLOG ARCHIVE

Zacks Blog: Zacks' Voice of the People highlights opportunities with Research in Motion
(RIMM)	07/20/10
Zacks Blog: Is RIMM Forming the Pattern of Death?
(RIMM)	07/19/10
Zacks Blog: Company News for July 19, 2010
(HAL, HAS, DAL, GOOG, RIMM, AAPL, NOK, MOT, KKR, GS, BAC, BP)	07/19/10
Zacks Blog: Earnings Preview: Nokia Corp.
(NOK, AAPL, RIMM, GOOG)	07/19/10
Zacks Blog: Stock Market News for July 16, 2010
(GS, JPM, BAC, C, INTC, AAPL, NOK, RIMM, MOT, GOOG, AMD, DELL, HP)	07/16/10

 Posting Comment...

There was a problem posting this this comment. Please try back later.
[CLICK TO CLOSE X]

Comments (Limit 1000 Characters - Used: 0)

Please provide your comments here... Display Name: Email Address:  

 Loading Comments...

Be the first to comment on this article!