If RIM (RIMM) Names Barbara Stymiest As Chairman It Would Be a Positive - Analyst
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Price: $14.64 +12.36%
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies said it seems likely that Research In Motion Ltd. (NASDAQ: RIMM) will name RBC's Barbara Stymiest as Chairman.
"Ms. Stymiest is considered one of the top executives in Canada," analyst Peter Misek states. "We would view such an announcement positively as we believe she will initiate a formal strategic review, possibly trim costs in the hardware business, and possibly announce additional partnerships; however, we continue to see an outright sale in the near-term as unlikely and see near-term results as challenged."
In addition to the Chairman role at RIM, Stymiest is often cited as the successor to RBC's current President and CEO, Gordon Nixon, Misek notes. "That would make her the first female bank CEO and probably the most powerful CEO in Canada," the said.
Commenting on what she could do, Misek said he believes she could initiate a formal strategic review. Some of this has already likely started with RIM likely agreeing to license Blackberry 10 to Samsung, HTC, and possibly others. "This would help create a critical mass for the ecosystem and maintain RIM's monthly service revenue; however, it puts more pressure on the hardware business in the short term," he comments. "Longer term, it possibly gets people hooked on the RIM ecosystem and may in fact allow them to sell more BB 10 handsets (if they are able to create compelling handsets)."
Other things RIM could do, according to Misek, include: ? 1) RIM could restructure the hardware business to make it profitable. 2) We believe an outright sale is unlikely at this point. 3) A partnership with Microsoft and Nokia is also possible but less likely as RIM cedes much value without longterm benefits apart from survival.
Misek maintained a Hold rating and $13.50 price target on RIM.
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 $15.51 yesterday.
"Ms. Stymiest is considered one of the top executives in Canada," analyst Peter Misek states. "We would view such an announcement positively as we believe she will initiate a formal strategic review, possibly trim costs in the hardware business, and possibly announce additional partnerships; however, we continue to see an outright sale in the near-term as unlikely and see near-term results as challenged."
In addition to the Chairman role at RIM, Stymiest is often cited as the successor to RBC's current President and CEO, Gordon Nixon, Misek notes. "That would make her the first female bank CEO and probably the most powerful CEO in Canada," the said.
Commenting on what she could do, Misek said he believes she could initiate a formal strategic review. Some of this has already likely started with RIM likely agreeing to license Blackberry 10 to Samsung, HTC, and possibly others. "This would help create a critical mass for the ecosystem and maintain RIM's monthly service revenue; however, it puts more pressure on the hardware business in the short term," he comments. "Longer term, it possibly gets people hooked on the RIM ecosystem and may in fact allow them to sell more BB 10 handsets (if they are able to create compelling handsets)."
Other things RIM could do, according to Misek, include: ? 1) RIM could restructure the hardware business to make it profitable. 2) We believe an outright sale is unlikely at this point. 3) A partnership with Microsoft and Nokia is also possible but less likely as RIM cedes much value without longterm benefits apart from survival.
Misek maintained a Hold rating and $13.50 price target on RIM.
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 $15.51 yesterday.
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