Reiterate Sell Rating on Palm Due to Competition, Margin Pressure

5/20 - "Although Palm (PALM) has released several new products and has a major platform redevelopment in the works, we believe that the company currently lags competitors with its dated product offering. The company faces increased competition with Apple's (AAPL) iPhone in the consumer market and Research in Motion (RIMM) in the enterprise market...reiterate our Sell rating and six-month price target of $4.00."

"We are also concerned that Motorola (MOT) will more aggressively enter the market for corporate email solutions given its acquisition of Palm's partner for corporate email, Good Technologies...Moreover, Palm's recently launched Centro has taken a toll on its margins."