Baird Sees Major OEM Bid for RIM (RIMM) 'Unlikely'; Cuts Target to $8

Research In Motion (Nasdaq: RIMM) issued a warning to investors late Tuesday night, saying the company is now looking for loss during its first quarter. RIM also announced it is tapping J.P. Morgan and RBC Capital as advisers to explore strategic alternatives.

RIM shares are down more than 8.3 percent Wednesday morning following the news.

One analyst thinks RIM might still have its head in the clouds. According to Robert W. Baird analyst William Power, RIM being bought by an existing OEM "would be a surprise."

Though speculation surrounds Microsoft (Nasdaq: MSFT) and Facebook (Nasdaq: FB) as potential suitors, Power sees Microsoft not really being too interested due to its focus on Windows.

The firm maintains an Underperform rating, but cut its price target from $10 to $8.

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