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Goldman Sachs Keeps Status Quo on RIM (RIMM) Despite Seemingly Horrible News

March 30, 2012 8:02 AM EDT Send to a Friend
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Price: $14.64 +12.36%

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    0 Buy, 0 Hold, 0 Sell

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Today's Overall Ratings:
    Up: 8 | Down: 13 | New: 4
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Surprisingly, Goldman Sachs is making no changes to its Neutral rating and $14 price target on Research In Motion Ltd. (NASDAQ: RIMM) following the company's weak Q4 results, the decision to no longer give guidance and management changes.

The firm notes CEO Heins appears to be much more of an agent of change and now plans a comprehensive review of strategic alternatives. Goldman views the bolder strategic moves and cost controls positively, though it may be too late given RIM's BlackBerry 10 platform will not arrive until later this year and the fundamental trajectory is even weaker than expected.

Still the significant free cash flow ($600M last qtr) supports the firm's asset-based valuation.

Goldman cut FY13/14/15 EPS estimates to $1.48/$1.06/($0.06) from $3.09/$2.00/$2.06 on lower ASPs and margins.

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 $13.73 yesterday.




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