CIBC World Downgrades Handspring to 'Hold'
CIBC World downgraded Handspring (HAND ) to hold from buy.
Analyst Thomas Sepenzis says he sees continued product and network push-outs, adding that there's too much competiton in the PDA market. He notes the company hasn't introduced new products in a long time, and is getting beat by Palm and Sony. He says the company's monochrome Treo is not selling as well as he expected, and he thinks many people are waiting for the color version. Sepenzis says the company has too much inventory in its channel, and thinks this will continue to pressure earnings per share. Sepenzis widened the $0.02 fourth quarter loss estimate to a $0.11 loss, and widened his $0.47 fiscal 2002 (June) loss estimate to a $0.60 loss. He also cut his $0.01 fiscal 2003 earnings per share estimate to a $0.11 loss. He has a $4 12-month target.