PALM’s F2Q10 Results to Beat Expectations
Analyst Shaw Wu of Kaufman Brothers maintains his "buy" rating on Palm Inc (NASDAQ: PALM). The target price for PALM is set to $16.
PALM is scheduled to report its F2Q10 results on December 17. Palm is likely to report its results ahead of expectations. Industry and supply chain checks indicate that the near-term expectations for the company are too pessimistic. PALM may have sold 670,000 smart phones with a favorable product mix during the quarter.
According to Kaufman Brothers, the company is likely to achieve profitability by the May 2010 quarter. The near-term sentiment surrounding Palm’s stock has become negative due to the losses the company incurred in the previous quarters. PALM has significant advantages with its multi-touch capability and vertical integration, the analyst adds.
