Nomura Securities Maintains a 'Neutral' on Research In Motion Ltd. (RIMM); Strategy Set To Repeat Mistakes Of Rivals
Tweet Send to a FriendGet 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: 10 | Down: 24 | New: 24
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 24 | New: 24
Trade RIMM Now!
Nomura Securities maintains a 'Neutral' on Research In Motion Ltd. (NASDAQ: RIMM) price target of $6.30.
Analyst, Stuart Jeffrey, said, "Management is not veering from existing strategy. One that we believe has a very low likelihood of success and that will most likely drive RIM into irrelevance. We estimate that hardware gross margins were -8% in Q1. With weak new products on the market and with BB10 launches pushed out to 2013, it is hard to see an immediate recovery. If RIM continues to be run as it is, we believe that the company will eventually fail. We do not expect a bid for RIM happening in the near term, but cannot discount this. A strategic acquisition seems unlikely, but so did Google’s (Nasdaq: GOOG) bid for Motorola. We have cut our revenue estimates by 24% for FY13 and 30% for FY14. Together with material cuts to our hardware gross margins, we have cut our EPS estimates to -$1.70 for FY13 and -$1.10 for FY14."
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 $9.13 yesterday, with a 52 week range of $8.83-$33.54.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Stuart Jeffrey, said, "Management is not veering from existing strategy. One that we believe has a very low likelihood of success and that will most likely drive RIM into irrelevance. We estimate that hardware gross margins were -8% in Q1. With weak new products on the market and with BB10 launches pushed out to 2013, it is hard to see an immediate recovery. If RIM continues to be run as it is, we believe that the company will eventually fail. We do not expect a bid for RIM happening in the near term, but cannot discount this. A strategic acquisition seems unlikely, but so did Google’s (Nasdaq: GOOG) bid for Motorola. We have cut our revenue estimates by 24% for FY13 and 30% for FY14. Together with material cuts to our hardware gross margins, we have cut our EPS estimates to -$1.70 for FY13 and -$1.10 for FY14."
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 $9.13 yesterday, with a 52 week range of $8.83-$33.54.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Urban Outfitters (URBN) Added to Best Ideas List at Janney Capital on Solid Q1 Results
- UPDATE: Michael Kors (KORS) Under-Appreciated; Canaccord Genuity Starts at Buy
- Jefferies Raises Numbers on hhgregg (HGG), But Remains on Sidelines
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS ViewRelated Entities
Nomura
Login with Facebook
Sign 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!
