Deutsche Bank Gives Palm a Hand
Sales of the Palm Pre aren’t slowing; nor is the device suffering from unusually high return rates. And all this incessant hand-wringing over the Pre’s performance at market is needless.
That’s the word from Deutsche Bank analyst Jonathan Goldberg, who says the smartphone is doing just fine.
“Palm’s stock has underperformed since their earnings announcement last month in the absence of any hard news,” Goldberg wrote in a research note Friday. “We think market fears about return rates, weekly order trends and applications development are off the mark. Our checks continue to point to solid demand and carrier interest.”
According to Goldberg, his checks also indicate that “…Palm has become a healthy momentum stock adding to volatility. Sifting through the noise, however, we believe the key trends are healthy. The August quarter is tracking ahead of our estimates. We think the Street is still underestimating the company’s improved execution and long-term operating leverage.”
That’s certainly possible, given the wide disagreement among analysts over sales and satisfaction. Perhaps when Palm (PALM) next reports earnings, it will release some hard sales numbers and put an end to this speculation once and for all.