UBS Maintains a 'Neutral' on Research In Motion Ltd. (RIMM); More of the Same; Disappointing Tone
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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: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Research In Motion Ltd. (NASDAQ: RIMM) price target lowered from $18 to $15.50.
UBS analyst says, "Disappointingly, RIMM is largely sticking with the status quo, with a few minor exceptions: a) CEOs have requested their salaries be reduced to $1/year b) a comprehensive review of all facets of the firm c) subtle hints they may do more with the NOC. While incremental, these fall short of our expectations of a) a material shift in strategy b) potential for BB10 to come sooner. Instead, RIMM will increase S&M to try to revive its brand in NA, an expensive move in our opinion."
"On a Y/Y basis, the 4Q guidance implies a 16% decline in sales, compared to a 5%/10% decline in 3Q/2Q. Further, we estimate Service ARPU declined 9% q/q in 3Q, a level that is more typical on an annual basis, primarily as we believe lower-paying intl subs become a larger part of the mix. We est. Revs declined 25%, 45%, 14%, Y/Y in Canada, US, and the UK, while growing 30% in other intl markets." (UBS cuts FY13 EPS estimate from $3.87 to $3.05)
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.
UBS analyst says, "Disappointingly, RIMM is largely sticking with the status quo, with a few minor exceptions: a) CEOs have requested their salaries be reduced to $1/year b) a comprehensive review of all facets of the firm c) subtle hints they may do more with the NOC. While incremental, these fall short of our expectations of a) a material shift in strategy b) potential for BB10 to come sooner. Instead, RIMM will increase S&M to try to revive its brand in NA, an expensive move in our opinion."
"On a Y/Y basis, the 4Q guidance implies a 16% decline in sales, compared to a 5%/10% decline in 3Q/2Q. Further, we estimate Service ARPU declined 9% q/q in 3Q, a level that is more typical on an annual basis, primarily as we believe lower-paying intl subs become a larger part of the mix. We est. Revs declined 25%, 45%, 14%, Y/Y in Canada, US, and the UK, while growing 30% in other intl markets." (UBS cuts FY13 EPS estimate from $3.87 to $3.05)
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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