Deutsche Bank Slashes Price Target on Research In Motion (RIMM); Asks "Where's the Cash?"
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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: 10 | Down: 18 | New: 20
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
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Deutsche Bank slashed its price target on Research In Motion Ltd. (NASDAQ: RIMM) from $14 to $10 following Q3 results and disappointing guidance after the close.
"We believe he company's current management structure is unworkable. Having two CEOs has hindered decision making in our view and we feel the Board needs to take stronger action to right the ship, but it appears unable to do so."
The firm also asks "Where's the Cash?"
They note that the company has generated $2.9 billion in operating profits, but over that same period the company saw its cash balance decrease by $969 million. "It is not clear where the cash is going. LTM capex was $1.0 billion, and acquisition of intangibles of $1.5 billion. The benefits of all this spending are not clear. We think the company is seriously mis-allocating capital. Despite ostensibly being highly profitable, we find it concerning that they generate so little cash."
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 $15.13 yesterday.
"We believe he company's current management structure is unworkable. Having two CEOs has hindered decision making in our view and we feel the Board needs to take stronger action to right the ship, but it appears unable to do so."
The firm also asks "Where's the Cash?"
They note that the company has generated $2.9 billion in operating profits, but over that same period the company saw its cash balance decrease by $969 million. "It is not clear where the cash is going. LTM capex was $1.0 billion, and acquisition of intangibles of $1.5 billion. The benefits of all this spending are not clear. We think the company is seriously mis-allocating capital. Despite ostensibly being highly profitable, we find it concerning that they generate so little cash."
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 $15.13 yesterday.
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