Morgan Joseph Cuts Palm to Sell and Sets $0 Price Target (PALM)

An analyst at Morgan Joseph downgraded shares of Palm (Nasdaq: PALM) to Sell this morning, also slapping on a big fat $0 price target.

Following last night's weak Q3 results and concerning outlook (and the resulting 9% drop in the stock), the firm believes that Palm's "death spiral is accelerating." Morgan Joseph said it is doubtful about Palm's survival given:

• comments on its call last night that Verizon (NYSE: VZ) employees were not demonstrating Palm's devices properly. Morgan Joseph said, "We are skeptical that Palm's efforts at training Verizon representatives are going to have a meaningful impact on consumer demand;"
  
• cash burn. The firm said, "Despite Palm's efforts at conserving cash, we estimate that it may only have sufficient cash to operate through mid-CY2011 given expected cash burn and net losses;"
  
• expectations that a strategic buy will not approach Palm.

To track all the analyst action on Palm shares following yesterday's results (believe me, there's a lot), visit our Analyst Ratings page.

Palm, Inc. provides mobile products for individual users and business customers worldwide.

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