The Palm Pre was supposed to be Palm’s saviour handset, and it hasn’t done too badly when it first launched on Sprint, and then Palm gave the smartphone to Verizon Wireless as the Palm Pre Plus and Palm Pixi Plus, and apparently the Verizon versions haven’t been doing too well.

According to an article on market watch, some analysts have been keeping an eye on the Palm smartphones to see how they fair against the likes of BlackBerry and Android based smartphones, the result of which means Palm has been downgraded to underperform.

Analyst Vivek Arya has said that Palm’s newest webOS phones have seen “sluggish” sales with Verizon Wireless and that Palm’s platform hasn’t gained sufficient customer demand and carrier support. As a result, Arya cut his target price on the stock to $10 down from $20.

So it looks like Palm isn’t fairing too well at the moment, and there are apparently rumours that Verizon may dump the Palm Plus handset altogether, although this hasn’t been confirmed.