UPDATE: National Bank Financial Downgrades Research In Motion Limited to Sector Perform Ahead of Results
National Bank Financial reduced its rating on Research In Motion Limited (NASDAQ: RIMM) from Outperform to Sector Perform with a reiterated $15 price target.
National Bank Financial commented, "It's a good time to take some profit ahead of the quarter; we expect a lower entry point is coming. Investors are looking for reasons to sell this stock after such a huge rally. Short interest is at an all-time high (near 25%), RIM's market share is falling in most countries, the BB10 will require a huge launch hinging on many important partners, RIM's enterprise base is still months away from a BES 10 upgrade, hardware margins are under pressure across the industry, and RIM's value-added services fees are under pressure. We still like the product-cycle investment thesis but would wait for the quarter."
Research In Motion Limited closed at $13.93 on Monday.
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