Deutsche Bank Upgrades Research In Motion Ltd. (RIMM) to Hold After co-CEOs Resign
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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
Trade RIMM Now!
Deutsche Bank upgraded Research In Motion Ltd. (NASDAQ: RIMM) from Sell to Hold with a price target of $18 following news the co-CEOs stepped aside.
The firm comments, "Our leading concern for the company has been the division at the top which has seemingly paralyzed the company's strategic functions for several years. While we think the company's near-term financials remain under pressure, we are raising the rating until we can better evaluate the new CEO's role."
The advantage of having a new CEO is that allows for them opening of new alternatives, the firm also notes.
"The company could conceivably license its platform to others (although we caution that there may be few takers). We still see the key weakness at RIM has been its inability execute by shipping phones and software on time. Moreover, we cannot rule out the possibility the company sells itself, as has been mentioned in the press. We think there still may be some (diminishing) value in the company's installed base and data center network."
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 $17.00 yesterday, with a 52 week range of $12.45-$70.54.
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The firm comments, "Our leading concern for the company has been the division at the top which has seemingly paralyzed the company's strategic functions for several years. While we think the company's near-term financials remain under pressure, we are raising the rating until we can better evaluate the new CEO's role."
The advantage of having a new CEO is that allows for them opening of new alternatives, the firm also notes.
"The company could conceivably license its platform to others (although we caution that there may be few takers). We still see the key weakness at RIM has been its inability execute by shipping phones and software on time. Moreover, we cannot rule out the possibility the company sells itself, as has been mentioned in the press. We think there still may be some (diminishing) value in the company's installed base and data center network."
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 $17.00 yesterday, with a 52 week range of $12.45-$70.54.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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