Lehman Brothers cut estimates on Handspring (HAND ).
Analyst James To says Handspring's forecasted revenue cut was much worse than expected and says the general U.S. economic slowdown has caused the channel sell through growth of handheld computing devices to drop from 100%+ year over year in January to 12% year-over-year growth in April and May. He noted Palm's aggressive pricing action during Q4, and says sales of Handspring's high-end Visor Prism and Visor Edge products were disappointing. To is cautious in the near term due to excessive channel inventory and aggressive pricing. He widened his $0.12 Q4 loss estimate to a $0.32 loss, and lowered the $0.34 fiscal 2001 (June) loss to a $0.55 loss. He sees a $0.42 fiscal 2002 loss and has a $18 target. To rates Handspring as buy.