Nomura Securities Cuts Estimates and Price Target on Research In Motion (RIMM); Too Little, Too Late
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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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Nomura Securities maintains a 'Neutral' on Research In Motion Ltd. (NASDAQ: RIMM) price target cut from $15 to $13.25.
Analyst, Stuart Jeffrey, said, "Management strategy beginning to head the right way, but still in near-term fighting mode. New CEO Heins noted the need for fundamental changes in strategy including a $1bn cost-cutting plan and searching out constructive partnerships (ODM strategy a possibility). Weak sales triggered a $267m inventory write-down yet inventories are still 66% up year on year, with revenue down 25%. Q1 volumes likely to see further sequential declines. We see little likelihood of RIM succeeding as a standalone ecosystem. Our recommendation remains Neutral. Long-term we expect the company to wind down, but see $13.25 of value if management runs the business for cash. Our 2012E/2013E EPS goes from $2.70 / $2.51 to $2.20 / $1.77."
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 $13.73 yesterday.
Analyst, Stuart Jeffrey, said, "Management strategy beginning to head the right way, but still in near-term fighting mode. New CEO Heins noted the need for fundamental changes in strategy including a $1bn cost-cutting plan and searching out constructive partnerships (ODM strategy a possibility). Weak sales triggered a $267m inventory write-down yet inventories are still 66% up year on year, with revenue down 25%. Q1 volumes likely to see further sequential declines. We see little likelihood of RIM succeeding as a standalone ecosystem. Our recommendation remains Neutral. Long-term we expect the company to wind down, but see $13.25 of value if management runs the business for cash. Our 2012E/2013E EPS goes from $2.70 / $2.51 to $2.20 / $1.77."
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 $13.73 yesterday.
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