Market Overview

UPDATE: Paradigm Capital Downgrades Research In Motion to Hold on Service Model Changes

Related RIMM
Blackberry's Investor Strategy
A Peek Into The Market Before The Trading Starts

Paradigm Capital reduced its rating on Research In Motion (NASDAQ: RIMM) from Buy to Hold but raised its price target from $14 to $14.50.

Paradigm Capital noted, "While we are pleased to see the company execute on its operational restructuring plan (as evidenced by the better-than-expected earnings), we believe the uncertainty (i.e., lack of information) about the potential impact of the transition of the company's Services revenue model could act as an overhang on the stock, particularly given that we believe it represents RIM's most profitable revenue line. While we think the impact of these changes to the Services revenue could be gradual (i.e., it would be based on BB10 adoption) and that lower Services ARPU's could be offset by further cost efficiencies, it does add another layer of uncertainty that could put a cap on RIM's recent stock price momentum."

Research In Motion closed at $14.12 on Thursday.

Latest Ratings for RIMM

DateFirmActionFromTo
Jan 2013Credit SuisseDowngradesNeutralUnderperform
Jan 2013Evercore PartnersDowngradesEqual-weightUnderweight
Jan 2013Standpoint ResearchDowngradesBuyHold

View More Analyst Ratings for RIMM
View the Latest Analyst Ratings

Posted-In: Paradigm CapitalAnalyst Color Downgrades Intraday Update Analyst Ratings

 

Related Articles (RIMM)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters