Comments on: Analysts Continue to Downgrade Palm
And the hits just keep on coming. After yesterdays surprising revenue warning, the analysts are chiming in today with further negative reports and many are beginning to question Palms long-term viability. Tech Trader Daily has a good round up of analyst notes and MarketWatch has published a detailed article on the situation as well citing many of the same sources.
Jim Suva, at Citigroup reports: He Maintains a Sell rating, but adds Palm to his "Top Picks Live" list, as a short. Target to $1.20, form $3.75. He says the consensus "is underestimating the fundamental product issuees leading to even more sales and profit pressures ahead." He has "concerns for liquidity" for FY 2010 due to lack of cash flow and increased competition. "We are not convinced Palm's new products," due in the 2009 first half, "are strong enough or will come fast enough to overcome current product and economic challenges."