Nomura Securities Maintains a 'Neutral' on Research In Motion (RIMM); Review of 1Q Results

Nomura Securities maintains a 'Neutral' on Research In Motion Ltd. (NASDAQ: RIMM), PT lowered from $53 to $26.

Nomura analyst, Stuart Jeffrey, said, "While revenue missed by 6%, strong gross margin of 44% (beat by 243bp) meant that EPS of USD 1.33 was in line with expectations. Management finally stepped away from its USD 7.50 FY2010 EPS target, cutting guidance to USD 5.25–6.00, below consensus of USD 6.1. Our new EPS ests are 15–26% below guidance for 2012. We still see RIM as heavily challenged long term. However, unlike at Nokia (NYSE: NOK), we see some catalysts that may surprise in the coming two quarters. While we are not optimistic, the risk of these surprising against a negative investor backdrop leads us to retain our Neutral rating."

For more ratings news on Research In Motion Ltd. click here and for the rating history of Research In Motion Ltd. click here.

Shares of Research In Motion Ltd. closed at $35.33 yesterday.

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