Goldman Sachs Suggests Buying Put Spreads on Research In Motion

Goldman Sachs is out with a research note this morning, where it suggests that traders buy put spreads on Research In Motion

ahead of earnings. Goldman Sachs CommTech analyst Simona Jankowski rates RIMM Sell and sees 26% downside to her 12-month price target of $22. She expects RIM's quarter to fall short of Street expectations. Her F2Q (August) sales/EPS estimates are $4,147 mn/$0.75 vs. the Street's $4,469 mn/$0.87 based on continued downside to device units and ASPs. She also expects F3Q revenue guidance to be below Street. Her F3Q sales/EPS estimates are at $4,672 mn/$1.38 vs. the Street's $5,277 mn/$1.36, on lower smartphone and tablet assumptions. The analysts suggest buying the September $29/24 put spread for $1.32. Research In Motion Limited is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market