Jefferies Maintains Hold on Research In Motion After Management Changes

Jefferies & Company has published a research report on Research In Motion (NASDAQ: RIMM) after the announcement that Jim Balsillie and Mike Lazardis resigned from their co-CEO/Chairmen positions.

In the report, Jefferies writes, "Co-CEOs and co-Chairmen Jim Balsillie and Mike Lazaridis resigned both posts effective immediately; new CEO Heins was unexpected. He says he is open to licensing BB10. We have become more constructive following these events, but we still need to see a large restructuring and evidence of opening up to other ecosystems. We continue to see the next three quarters as significantly challenged and reiterate our Hold rating and $17 target. [As] we previewed, Barbara Stymiest, former COO of RBC and former CEO of the Toronto Stock Exchange, was announced as RIM's new Chairman; however, naming COO Thorsten Heins (at Siemens until 2007) as CEO was unexpected. Lazaridis will become Vice Chair and head an innovation committee; Balsillie will remain a director."

Jefferies maintains its Hold rating and $17 price target on Research In Motion, which closed Friday at $17.00.