Citi Gets More Bearish on Sell-Rated RIM (RIMM) Into Q1 as Manufacturers Back Out
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Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
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Citi's Jim Suva is getting bearish on Research In Motion (Nasdaq: RIMM) heading into the mobile device maker's first-quarter 2013 report, expected to be released next Thursday.
Those following the stock might remember May 29th, when RIM said it will likely issue an operating loss in the first quarter. The company also said it will be exploring alternatives.
One of the more important points Suva makes is RIM is missing the Back-to-School 2012 shopping season due to recent changes in outsourced manufacturing. In addition to recent news from Celestica the company will cease manufacturing ops related to RIM, the analyst said Flextronics (Nasdaq: FLEX) is potentially taking a $10-$20 million charge and de-emphasizing RIM, while Jabil (NYSE: JBL) will be focused on other customers but is not taking a charge.
With the upcoming quarterly results, Suva sees the focus being on the depth of the loss, as well as underlying dynamics like hardware pricing, messaging service ARPU, and how gross margins are faring.
Citi has a Sell rating and $9.50 target on RIM.
Following a 2.7 percent dip Monday, RIM shares are up 0.9 percent in early trading.
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Those following the stock might remember May 29th, when RIM said it will likely issue an operating loss in the first quarter. The company also said it will be exploring alternatives.
One of the more important points Suva makes is RIM is missing the Back-to-School 2012 shopping season due to recent changes in outsourced manufacturing. In addition to recent news from Celestica the company will cease manufacturing ops related to RIM, the analyst said Flextronics (Nasdaq: FLEX) is potentially taking a $10-$20 million charge and de-emphasizing RIM, while Jabil (NYSE: JBL) will be focused on other customers but is not taking a charge.
With the upcoming quarterly results, Suva sees the focus being on the depth of the loss, as well as underlying dynamics like hardware pricing, messaging service ARPU, and how gross margins are faring.
Citi has a Sell rating and $9.50 target on RIM.
Following a 2.7 percent dip Monday, RIM shares are up 0.9 percent in early trading.
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