Citi analyst Jim Suva previously suggested that you should “Sell” Palm stocks, but after the WebOS and Pre were announced, now updated his statement to “Hold”. He guesses that up to 1.5 million Pre phones will be sold in the first year, and that is his guess only for the U.S. and Sprint. We hope it will be at least 3 million units globally! 

Our estimates move significantly higher on the strength of the Pre; however, we still forecast operating and net income losses for the next few fiscal years. Although we are very optimistic on unit volumes, we are taking a fairly conservative view on ASPs and margins. While reaction was overwhelmingly positive (and rightfully so in our view), very little was asked or offered on Palm’s pricing strategy for the Pre. We think Palm will soon have to offer details on expected ASP for the Pre and will likely revisit our estimates in the future. That said, even with a fairly conservative ASP and margin expectation, our forecasted operating losses narrow dramatically and we would expect that
trend to be echoed in consensus estimate.

more at ZDNet