Nomura Securities Sees Research In Motion (RIMM) Falling Into The Abyss; Little Hope Left
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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 of $9.10.
Analyst, Stuart Jeffrey, said, "RIM slides into a loss – challenges to remain...Management seems to still have high hopes that BB10 will drive a turnaround and that current problems are temporary. Our revised forecasts assume a permanent decline in competitiveness, a sustained decline in units and persistent losses from the device business long-term. We still view management’s strategy to drive differentiation across multiple vertical layers of the value chain as overly ambitious and unlikely to succeed."
"We continue to forecast a profitable cash inflow from subscription revenues (despite subscriber numbers seemingly being close to a peak) but have this offset by high devices costs as management attempts to equal Apple (Nasdaq: AAPL), Google (Nasdaq: GOOG) / Android and Microsoft (Nasdaq: MSFT)...Strategic buyers appear to have shown little interest in acquiring RIM. Financial buyers may see more value (based on the services revenues) but may not show much interest until the stock drops below $6. We remain neutral on the stock to reflect the M&A risk." (slashes FY13 EPS estimate from $2.20 to $0.10 and FY14 from $1.77 to -0.10)
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 $11.23 yesterday.
Analyst, Stuart Jeffrey, said, "RIM slides into a loss – challenges to remain...Management seems to still have high hopes that BB10 will drive a turnaround and that current problems are temporary. Our revised forecasts assume a permanent decline in competitiveness, a sustained decline in units and persistent losses from the device business long-term. We still view management’s strategy to drive differentiation across multiple vertical layers of the value chain as overly ambitious and unlikely to succeed."
"We continue to forecast a profitable cash inflow from subscription revenues (despite subscriber numbers seemingly being close to a peak) but have this offset by high devices costs as management attempts to equal Apple (Nasdaq: AAPL), Google (Nasdaq: GOOG) / Android and Microsoft (Nasdaq: MSFT)...Strategic buyers appear to have shown little interest in acquiring RIM. Financial buyers may see more value (based on the services revenues) but may not show much interest until the stock drops below $6. We remain neutral on the stock to reflect the M&A risk." (slashes FY13 EPS estimate from $2.20 to $0.10 and FY14 from $1.77 to -0.10)
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 $11.23 yesterday.
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