Nomura Securities Maintains a 'Neutral' on Research In Motion (RIMM); Disappointing Guidance, Reducing Estimates
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Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
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Nomura Securities maintains a 'Neutral' on Research In Motion Ltd. (NASDAQ: RIMM) price target cut from $18.90 to $15.
Nomura analyst, Stuart Jeffrey, said, "While RIM already warned on Q3 and indicated that Q4 would prove weak, guidance came in surprisingly low at EPS of 80 to 95 cents vs consensus expectations of $1.24. Revenue and smartphone unit guidance also fell short of expectations as excess inventory impairs sell-in. FY13 EPS estimates were cut by 22% to $2.70. The launch of RIM’s new operating system (QNX / BBX / BB10) was originally due in Q1 2012, but is now pushed back to late 2012. We see a high risk that this is too late to turn around RIM’s position. We see a $15 break-up value, but believe the price may need to fall below $10 to attract bids. Our adjusted 2013E EPS goes from $3.44 to $2.70 and FY14E from $2.67 to $2.51."
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 $15.13 yesterday.
Nomura analyst, Stuart Jeffrey, said, "While RIM already warned on Q3 and indicated that Q4 would prove weak, guidance came in surprisingly low at EPS of 80 to 95 cents vs consensus expectations of $1.24. Revenue and smartphone unit guidance also fell short of expectations as excess inventory impairs sell-in. FY13 EPS estimates were cut by 22% to $2.70. The launch of RIM’s new operating system (QNX / BBX / BB10) was originally due in Q1 2012, but is now pushed back to late 2012. We see a high risk that this is too late to turn around RIM’s position. We see a $15 break-up value, but believe the price may need to fall below $10 to attract bids. Our adjusted 2013E EPS goes from $3.44 to $2.70 and FY14E from $2.67 to $2.51."
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 $15.13 yesterday.
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