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Goldman Sachs Suggests Buying Put Spreads on Research In Motion

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

Posted-In: Goldman SachsAnalyst Color Options Markets Trading Ideas

 

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