Despite Another Guide Down, RIM's (RIMM) Sum-of-the-Parts Will Lend Support - Goldman Sachs

While shareholders of Research In Motion Ltd. (NASDAQ: RIMM) have been through hell and back, one venerable Wall Street firm is telling clients the stock is undervalued based on their sum-of-the-parts valuation.

Despite the recent negative preannouncement, Goldman Sachs, a notorious past bear on the stock, is sticking with their $18 per share sum-of-the-parts analysis. This would suggest 9 percent upside from current levels.

The firm noted that RIM's preannounced 3QFY12 smartphone unit shipments of 14.1 million were above the mid-point of its guidance of 13.5-14.5 million and the firm's own estimate of 13.9 million. Despite the unit upside, RIM guided below expectations which implies a weaker ASP mix.

Goldman now sees RIM average smatphone ASPs at $285 (down from $287) and tablet ASP at $300 (down from $425).

Despite the lower prices and estiamtes, Goldman said the sum-of-the-parts lends support.

Goldman has a Neutral rating on RIM.

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 $16.77 yesterday.

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