Stifel Nicolaus Maintains Hold On Palm Shares (PALM)
After the abysmal earnings numbers and commentary from Palm Inc. (NASDAQ: PALM) last night, the shares have lost 26% and are trading at $4.18. Some Wall Street analysts have even come out today with a price target of $0 on the stock today. A report released by Stifel Nicolaus highlights many of the concerns that have caused investors to dump their shares today, but the firm is maintaining its Hold rating on PALM.
The analyst said that Palm's webOS "might have strategic value to an acquirer," in reiterating the Hold rating. Without a deal, however, Stifel's models indicate the company will burn through all of its cash in 12 months. The report basically indicates the consensus opinion on the Street that the only hope for PALM is a hail-mary new device release, which is unlikely, or some sort of M&A deal where the company would be bought out.
