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Bernstein Keeps Palm as 'Outperform'

Sanford Bernstein is keeping its outperform rating on Palm (PALM).

The cell-phone maker lowered its first quarter revenue forecast, and analyst Paul Sagawa say while the news is disappointing, it's not unexpected as the U.S. economy continues to be uncertain and demand at the high end of the market continues to be weak.

Sagawa says he continues to believe Palm has an attractive franchise but thinks management needs to further focus on its execution. Although the current stock price is intriguing, risks remain.

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