Baird Slices Target on RIM (RIMM) 25% to $15; Says Co. Still Overvalued

Wall Street may be getting more optimistic on Research In Motion (Nasdaq: RIMM) following recent news of PlayBook and Blackberry shipment cuts, but one analyst isn't fooled.

Baird's William Power cut his price target on RIM shares 25 percent from $20 to $15, while keeping an Underperform rating on the stock. Saying the Street is still overvaluing RIM, Power believes current estimates will keep pressure on shares. The analyst also believes RIM's patents are overvalued based on recent M&A deals.

With the call, Power adjusted some of his numbers. Fourth-quarter shipments were revised lower from 14.1 million to 13.1 million units, while earnings moved from $1.60 to $1.00 per share. Fiscal 2012 EPS move from $5.00 to $4.37, 2013 cut from $3.95 to $3.00, and shipments down from 52.6 million to $46.2 million.

Risks to the bear case, Power states: a potential buyer stepping in. But with the significant decline in franchise and enterprise value, which company would want to buy RIM remains a mystery to Power.

RIM shares are about 2 percent lower Monday.

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