Lehman Brothers cuts Palm rating
A Lehman Brothers analyst on Monday cut his rating on Palm Inc. stock, citing increasing competitive pressures and falling demand for the company's key Treo products.
Lehman Brothers analyst Jeffrey Kvaal, in a client note, cut his rating to "Underweight" from "Equal Weight" and trimmed his target price to $12 from $13.
While sales through wireless providers Sprint and Verizon Communications Inc. - which generate about 52 percent of annual revenue - remain healthy, the analyst said sluggish sales through AT&T Inc. could drag down Palm's fiscal first-quarter performance to the low end of expectations. Kvaal cut his estimate of per-share earnings by 2 cents to 6 cents per share.
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