RIM Shares Fall on Guidance But Analysts Still Mostly Bullish
As usual, analysts are all over Research In Motion (Nasdaq: RIMM) following the company's Q1 results last night. Despite a stock which is selling off amid in-line results and somewhat soft Q2 guidance, most analysts are either bullish or neutral on the BlackBerry maker.
Shares of Research In Motion are currently down 1.7% to $75.24.
Below is a summary of all the analyst calls we have seen on RIM today:
- Canaccord Adams maintains a Hold and $95 price target - the firm said it came away from RIM's results with a "mixed outlook". Pros: solid operating margins, very low inventory levels which could "fuel unit upside when carriers start to replenish stock." Cons: light device sales, gross margins that could again push to the low 40's, and weak enterprise net subscribers. Overall, Canaccord said that it saw nothing that would change its very bullish long-term outlook on Research In Motion.
- Piper Jaffray maintains a Neutral rating and $75 price target - the firm likes Research In Motion's near-term prospects, but said it is concerned with the long-term view given "increasing smartphone competition, RIM's ongoing investments to grow its global brand and market share, and the potential for longer-term declining margins."
- TD Newcrest maintains an Action List Buy rating and $100 price target - sees upside potential to RIM's guidance but was "slightly disappointed with shipment
guidance of 8.1 to 8.7 million units". The firm also said another positive was that opex did not seem to be ramping as quickly as they had expected.
- Deutsche Bank maintains a Hold and lifts its price target from $56 to $67 - remaining on the sidelines due to cash flow concerns, increasing competition and pricing pressures on the mobile device sector. Looking at enterprise users, Deutsche Bank noted that subscribers growth slowed considerably during the quarter and may even have declined.
- BMO Capital maintains an Outperform and lifts its price target from $82 to $90
- Thomas Weisel maintains an Overweight rating and moves its target from $92 to $95
- Goldman Sachs maintains a Conviction Buy and $96 price target
- Research Capital maintains a Buy and raises its price target from $92 to $98 - the firm calls RIM's position in the enterprise market "very defensible" and also notes that RIM's "platform architecture is driving increased carrier support"
- Raymond James maintains an Outperfrom and boosts its target from $86 to $90
- Broadpoint.AmTech reiterates its Buy and raises its target from $90 to $110. The firm sees "plenty" of catalysts ahead, including the launch of the Tour this summer, other new products in the fall and "expansion into Europe and Asia for continued growth".
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