Morgan Joseph Thinks Palm (PALM) Pre Shipments May Disappoint

Morgan Joseph published a note today predicting that shipments of the Palm (Nasdaq: PALM) Pre may disappoint.

Morgan Joseph believes the anticipated 57% y/y sales decline should be largely due to a decrease in non-Pre unit shipments and low Pre shipments during the quarter. It thinks Palm shares should be sold as it is trading at 3.8x Morgan Joseph's CY2010E EV/Sales.

After Morgan conducted checks last month, it now believes Pre sales have slowed significantly since their launch and unit sales for F1Q10 may disappoint Street expectations, with some estimates exceeding 600,000 Pre units shipped.

Morgan believes that shipments have slowed to approximately 100,000 units in July from approximately 200,000 in June, while August shipments may have tracked lower than July's. As a result, it estimates Pre shipments of 350,000 for the August quarter.

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