Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Morgan Keegan Cuts Palm to Market Perform


Morgan Keegan downgraded Palm (PALM) to market perform from outperform, citing the handheld computing company's stock valuation.

Analyst Tavis McCourt says that Palm's shares have gained 32% year to date, and they now accurately reflect the company's likely growth outlook. McCourt notes that at 23.6 times his calendar year 2006 cash earnings per share (EPS) expectations, he believes the valuation reflects his expectation of 20% to 25% EPS growth over the next two years. He says his limited retail store checks point to strong demand for Palm's product the Treo 700w and steady demand for its Treo 650 at US carriers, but he notes that private-labelled 6700 product lines at Sprint Nextel (S) and Verizon Wireless are creating meaningful competition for Treos in the consumer market. He keeps his $1.63 fiscal year 2006 (ending May) EPS estimate.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus