Standard & Poor’s is the latest Wall St firm to put out another pessimistic outlook on Palm’s near term financial prospects. S&P analyst Todd Rosenbluth has just changed his rating on Palm from Hold to Sell citing Palm’s current competitive situation and the larger economic climate.
Todd stated “We believe PALM is more exposed than peers to any fluctuations in its business or the economy, which has proved problematic given PALM’s weak Q2 and Q3 FY 08 (May) results. Even with recent handset model launch, we believe PALM’s ability to gain market share in the high-growth smartphone market will be limited by new offerings from competitors.”