Reduced FY12 Outlook Might Already Be Priced Into RIM (RIMM) Shares -Sterne Agee
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Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
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Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Ahead of third-quarter results out of Research In Motion (Nasdaq: RIMM) Thursday after the market closes, Sterne Agee's Shaw Wu is weighing in.
The analyst, who currently rates RIM shares a Neutral, believes the BlackBerry-maker will post quarterly results inline with the preannouncement issued on December 2nd. Wu sees RIM's FY12 guidance being reduced "materially," but notes such guidance should be "widely expected" by the market. The analyst cites longer-term competitive pressures continuing to weigh, as well as a tough product transition to BlackBerry 10 next year.
Despite the warning, Wu sees RIM's 70 million subscribers, push network and BlackBerry operating system as warranting value in a takeover. The analyst believes RIM's 5,000 or so patents alone could be worth $2.5-$4 billion.
The analyst assuming lowered guidance is already baked into the stock seems to make sense. After tumbling nearly 10 percent on December 2nd, shares of Research In Motion have fallen another 10 percent since.
Track all the analyst calls going into RIM's third-quarter report with our Analyst Ratings page.
The analyst, who currently rates RIM shares a Neutral, believes the BlackBerry-maker will post quarterly results inline with the preannouncement issued on December 2nd. Wu sees RIM's FY12 guidance being reduced "materially," but notes such guidance should be "widely expected" by the market. The analyst cites longer-term competitive pressures continuing to weigh, as well as a tough product transition to BlackBerry 10 next year.
Despite the warning, Wu sees RIM's 70 million subscribers, push network and BlackBerry operating system as warranting value in a takeover. The analyst believes RIM's 5,000 or so patents alone could be worth $2.5-$4 billion.
The analyst assuming lowered guidance is already baked into the stock seems to make sense. After tumbling nearly 10 percent on December 2nd, shares of Research In Motion have fallen another 10 percent since.
Track all the analyst calls going into RIM's third-quarter report with our Analyst Ratings page.
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