RIM Shares Continue Lower as Analysts Cautious Ahead of BB10 Unveiling
Shares of RIM (NASDAQ: RIMM) are continuing lower for the third day in a row on Tuesday as investors are positioning themselves ahead of the BlackBerry 10 launch on Wednesday. RIM shares fell 1 percent on Friday, nearly 8 percent on Monday, and are down another 7 percent this morning.
Several cautious research notes are likely weighing on the stock Tuesday.
UBS analyst Phillip Huang called the price points for BlackBerry 10 "too high" for customers in emerging markets. Huang believes customers in the developed markets are probably already locked into a phone which uses Android or Apple's iOS.
Avi Silver at CLSA warned of a likely slow ramp for BB10 into the enterprise market -- far and away the strongest segment of the market for BlackBerry. The analyst feels players this area of the market may hold off on buying BB10 devices until May when some new key features could be added. Silver said the lack of a QWERTY model until April could also pose a threat.
CLSA maintains a Sell rating and $8.75 price target on shares of Research In Motion.
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