Wedbush Says Change at RIM (RIMM) Is Welcome, But Company Has a Losing Strategy
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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: 7 | Down: 12 | New: 19
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
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Wedbush reiterated its Neutral rating and $16 price target on Research In Motion Ltd. (NASDAQ: RIMM) following news of the new CEO.
"While we are encouraged by the announcement of Thorsten Heins as the new CEO, we are not sure how much real change he will be able to bring to RIM," Wedbush's Scott Sutherland said.
He sees two critical items for RIM to consider changes around: 1) improved execution and time to market with new products; 2) new strategy, since the integrated approach, in our opinion, is too far behind Apple to catch up.
Sutherland said Heins can address the execution item.
RIM's recent track record of introducing products that are late (BlackBerry 7) or subpar (PlayBook) needs to improve, he says.
Continuing with the integrated strategy is likely a fools bet, Sutherland believes.
"In our opinion, consumers are driving demand decisions and seem focused on iOS- and Android-based devices. Furthermore, we believe Microsoft with Nokia is firmly positioned as the third option of choice for mobile operators. In addition, we believe iOS, Android, and even Windows have the ecosystem of devices, OS, applications and cloud offering to be successful and feel RIM greatly lags."
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.
"While we are encouraged by the announcement of Thorsten Heins as the new CEO, we are not sure how much real change he will be able to bring to RIM," Wedbush's Scott Sutherland said.
He sees two critical items for RIM to consider changes around: 1) improved execution and time to market with new products; 2) new strategy, since the integrated approach, in our opinion, is too far behind Apple to catch up.
Sutherland said Heins can address the execution item.
RIM's recent track record of introducing products that are late (BlackBerry 7) or subpar (PlayBook) needs to improve, he says.
Continuing with the integrated strategy is likely a fools bet, Sutherland believes.
"In our opinion, consumers are driving demand decisions and seem focused on iOS- and Android-based devices. Furthermore, we believe Microsoft with Nokia is firmly positioned as the third option of choice for mobile operators. In addition, we believe iOS, Android, and even Windows have the ecosystem of devices, OS, applications and cloud offering to be successful and feel RIM greatly lags."
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.
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