Jefferies Downgrades Research In Motion Ltd. (RIMM) to Underperform, Could Abandon OS Licensing Plans
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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: 21 | Down: 43 | New: 13
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade RIMM Now!
Jefferies downgraded Research In Motion Ltd. (NASDAQ: RIMM) from Hold to Underperform with a price target of $15 (down from $17).
The firm said checks indicate RIM will delay and possibly abandon its OS licensing plans and its email/BBM/social networking app in favor of direct competition with Apple/Android.
"With no near-term positive headlines now expected and with St still far too high for FY13 (Feb) at $3.17 vs. our $2.00 est, we cut our target to $15 and downgrade to Underperform as we await the BB10 launch (likely Sep)."
On the new CEO, Jefferies analyst Peter Misek said he likes the new CEO but not his near-term strategy.
"We recently met with Heins and found him engaging, articulate, and thoughtful. We see no evidence that he is under the influence of the former management in any way. But we respectfully disagree with him. We believe that an ~1 year delay in licensing BB10 (what we believe to be an excellent OS) is a mistake. We believe decelerating efforts to offer enterprises the ability to get their fast secure Blackberry email on an iPhone or an Android device is a mistake. We want to believe in RIM, but see the near-term risks as too high."
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 $17.21 yesterday, with a 52 week range of $12.45-$70.54.
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The firm said checks indicate RIM will delay and possibly abandon its OS licensing plans and its email/BBM/social networking app in favor of direct competition with Apple/Android.
"With no near-term positive headlines now expected and with St still far too high for FY13 (Feb) at $3.17 vs. our $2.00 est, we cut our target to $15 and downgrade to Underperform as we await the BB10 launch (likely Sep)."
On the new CEO, Jefferies analyst Peter Misek said he likes the new CEO but not his near-term strategy.
"We recently met with Heins and found him engaging, articulate, and thoughtful. We see no evidence that he is under the influence of the former management in any way. But we respectfully disagree with him. We believe that an ~1 year delay in licensing BB10 (what we believe to be an excellent OS) is a mistake. We believe decelerating efforts to offer enterprises the ability to get their fast secure Blackberry email on an iPhone or an Android device is a mistake. We want to believe in RIM, but see the near-term risks as too high."
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 $17.21 yesterday, with a 52 week range of $12.45-$70.54.
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