RIM (RIMM) Begins Lab Testing of BB10, But March '13 Launch Will Weigh on Results - Analyst
Get Alerts RIMM Hot Sheet
Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 11
Join SI Premium – FREE
According to Research In Motion (Nasdaq: RIMM), lab trails for its upcoming BlackBerry 10 operating system have commenced with 50 carriers. Shares are up about 9.4 percent Thursday as a result.
Jefferies noted that lab trials generally take about 3 months to 6 months, putting RIM on track for a first-quarter calendar 2013 launch of BB10. The firm is maintaining its own outlook for a March 2013 launch "as we believe the lab trials will be more complex given the new OS and lack of backward interoperability. We continue to see few catalysts before year end."
The March release is a push back from original plans of a January launch. That means that BB10 will miss RIM's February quarter. Additionally, Jefferies sees channel inventory drawdown ahead of the release hitting RIM's November quarter as well.
Finally, the firm commented, "We believe there is no imminent sale of RIMM and any licensing deals are likely well after the launch of BB10 in January."
Jefferies has an Underperform rating on RIM and price target of $5.
Jefferies noted that lab trials generally take about 3 months to 6 months, putting RIM on track for a first-quarter calendar 2013 launch of BB10. The firm is maintaining its own outlook for a March 2013 launch "as we believe the lab trials will be more complex given the new OS and lack of backward interoperability. We continue to see few catalysts before year end."
The March release is a push back from original plans of a January launch. That means that BB10 will miss RIM's February quarter. Additionally, Jefferies sees channel inventory drawdown ahead of the release hitting RIM's November quarter as well.
Finally, the firm commented, "We believe there is no imminent sale of RIMM and any licensing deals are likely well after the launch of BB10 in January."
Jefferies has an Underperform rating on RIM and price target of $5.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Korean Air in Talks to Buy at Least 10 Boeing 777X Jets (BA) - Reuters
- W.R. Berkley (WRB) PT Lowered to $93 at Truist Securities
- Enphase Energy (ENPH) PT Raised to $145 at TD Cowen
Create E-mail Alert Related Categories
Analyst Comments, Trader TalkRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!