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Analyst Says 'Too Soon to Tell' If RIM Can Rebound

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BGC Partners' Colin Gillis released a concerning note on Research In Motion (NASDAQ: RIMM) following Thursday evening's Q3 results, saying "buying time is not the same as a turnaround."

Gillis pointed out "The majority of the positives in the earnings report (cash up, revenue didn't decline worse than expected, subscribers dropped by just one million) just extend out a downward spiral, and does not indicate a return to a growth and profitability."

The analyst believes RIM can "at best" become a niche player. In a worst-case scenario, "its current focus on the higher end market cause it to lose traction in emerging markets."

Gillis concluded with, "Put more bluntly, this is still a company in sharp decline, it is too soon to tell if there can be a rebound..."

BGC Partners maintains a Sell rating and $7 price target on shares of RIM.

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

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