RIM (RIMM) Shares Higher Despite GMP Downgrade; Firm Cites Disappointing Developer's Conference

Shares of Research In Motion Ltd. (NASDAQ: RIMM) are outperforming the broader markets markedly Monday despite being downgraded from Hold to Reduce at GMP earlier. The stock is up about 4.4 percent versus a 0.8 percent move higher in the S&P 500.

GMP's Michael Urlocker reduced his price target on RIM shares from $33 to $18. The analyst said the downgrade was due to a disappointing speech by co-CEO Mike Lazaridis at last week's developer's conference. Specifically, Urlocker pointed to the exec's failure to mention next-gen BlackBerry's.

"Based on a weak track record in the past three years, our perception of product delays and declining support from carriers, we doubt that RIM can restore the confidence of customers and investors," according to Urlocker.

With Research In Motion shares last trading around $23.74, GMP's new price target represents potential downside of about 24 percent.

For more ratings news on Research In Motion Ltd. click here and for the rating history of Research In Motion Ltd. click here.

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