BGC Partners Maintains a 'Sell' on Research In Motion Ltd. (RIMM); Not In Transition Phase

May 30, 2012 1:29 PM EDT
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Price: $14.64 +12.36%

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    Up: 23 | Down: 34 | New: 34
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BGC Partners maintains a 'Sell' on Research In Motion Ltd. (NASDAQ: RIMM) price target lowered from $11 to $10.

Analyst, Colin Willis, said, "While it is encouraging to see new management take actions to start the process of turning around the company, including changing up the management team – the hard work remains ahead. We do not see the company as a takeover target as its market capitalization is still sizeable, and while shares may appear inexpensive on a ratio basis, the trap is that the company may be in the start of a cycle of a series of downward revisions to estimates as margins compress due to increasingly competitive pricing. Transitions to new platforms such as Blackberry 10 are always painful and developer support – which is already shaky - could lag even further during the process. Our opinion is that it is too soon to tell if the company can rebound. We are not changing our SELL rating and continue to remain concerned on future downward revisions."

BGC lowers FY13 EPS estimate to $0.03.

For an analyst ratings summary and ratings history on Research In Motion Ltd. click here. For more ratings news on Research In Motion Ltd. click here.

Shares of Research In Motion Ltd. closed at $11.23 yesterday.

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