Ouch, looks like Palm is in trouble despite the hopes an prayers of their saviour smartphones the Palm Pre and Palm Pixi as according to an article over on street insider, a Motgan Joseph analyst has downgraded Palm shares to Sell and placed a price target of a Palm crying $0.

The $0 price target follows on a weak Q3 result and resulting drop of 9 percent in the Palm stock, Morgan Joseph believes that Palm is in a “death spiral” and it is accelerating and that they are doubtful about Palm’s survival.

Morgan Joseph has said that they are sceptical that Palm’s efforts to train Verizon Wireless reps are going to have any meaningful impact on consumer demand for Palm devices. They also said that despite Palm’s cash conserving efforts they estimate that Palm will have sufficient cash to operate through mid-CY2011.

So it would appear that the hopes of the Pre and Pixi webOS smartphones would be Palm’s saviour looms to have been dashed and that Palm faces a long struggle to survive if it can at all.