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UPDATE: New BlackBerry (RIMM) a 'Meaningful Improvement' But May Not Move the Needle - Sterne Agee

January 30, 2013 3:54 PM EST Send to a Friend
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(Updated - January 30, 2013 3:55 PM EST)

Sterne Agee analyst Shaw Wu offered up some commentary on Research In Motion Ltd. (NASDAQ: RIMM) following today's official launch of BB10, two new smartphones, and a company name change to BlackBerry.

"Overall, we find BB10 a meaningful improvement but the big question remains whether carrier interest and some developer support will translate into strong sales to end users," Wu said. "While we believe BB10 makes RIMM potentially a more attractive acquisition target, its still large $8 billion market cap will likely make a deal too big for most."

Wu said the big question remains whether carrier interest and some developer support will translate into strong sales to end users. In addition, there are questions on whether the world really needs a third or fourth mobile OS touchscreen platform.

The analyst said the March U.S. launch could be disappointing to some. In addition, the Q10 won't be available until April. On the price points of $149.99 and $199.99, he said they don't seem competitive as many Android smartphones are available for $99, $49, or free. "We believe RIMM and/or carriers may need to price more aggressively to
generate interest," he said.

On the name change to BlackBerry, Wu said this makes sense in that it simplifies its
brand name.

The analyst maintained his Neutral rating on the stock.

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. are down 12 percent intra-day to $13.79.




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Comments

BB10
Bilal Jafar on 2013-01-31 04:19:31
Mark as Spam | Reply to this comment

This is the the Last shot from RIMM'S GUN in order to sustain in today's competitive market of smart phone. If Blackberry fails to live up to the expectations then I am afraid it is bye bye for Blackberry. I heard that Blackberry launch delayed a little bit in USA
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