Citigroup Reiterates Sell on Research In Motion, Adds to Top Picks Live
Citigroup has published a research report on Research In Motion (NASDAQ: RIMM) after the company's management change announcement.
In the report, Citigroup writes, "We reiterate our Sell rating on RIMM shares and are adding this stock to Top Picks Live. Prior to today's conference call, RIMM's shares were outperforming the broader market (17% YTD vs 8% NASDAQ), underpinned by hopes for an external CEO hire with an increased emphasis on breakup and software licensing revenue potential both of which are not on the agenda of the new CEO. We now expect the stock to give up these gains as neither of these catalysts realize near term. We believe RIMM will fight to try to develop & launch more compelling product offerings. We see Promotion Commotion (carriers shifting advertising & subsidies away from Blackberry), BYOD (Bring/Buy Your Own Device via Sandboxing corporate secure Sandboxing) and the Apple & Android invasion all posing meaningful challenges to RIMM revenues and margins."
Citigroup maintains its Sell rating and $17 price target on Research In Motion, which is currently trading down $1.09 from Friday's $17.00 closing price.
