UPDATE: Bank of America Merrill Lynch Reiterates Underperform Rating, Raises PT on Research In Motion Limited
In a report published Friday, Bank of America Merrill Lynch reiterated its Underperform rating on Research In Motion Limited (NASDAQ: RIMM), and slightly raised its price target from $6.00 to $7.00.
BofA Merrill Lynch noted, “Q3 trends remained weak, with device sales down 60% YoY, service revs showing early signs of strain, down 3% QoQ, and the subs base down for the first time ever. 4Q looks like a tough quarter in our view, as the late launch of BB10 and competitive dynamics could pressure BB7 sales. Our model is changing, with revenues going up for BB10, gross margins increasing for better mix, coupled with opex increases. The balance is an increase in FY14 EPS from a loss of $1.59 to a loss of $0.61. However, with high degree of uncertainty on many of our model inputs, especially pricing and mix, our model could change greatly once we get better clarity on RIM's plans. We are raising our PO from $6 to $7 on an improved balance sheet, but maintain Underperform.”
Research In Motion Limited closed on Thursday at $14.12.
Latest Ratings for RIMM
|Jan 2013||Credit Suisse||Downgrades||Neutral||Underperform|
|Jan 2013||Evercore Partners||Downgrades||Equal-Weight||Underweight|
|Jan 2013||RBC Capital||Maintains||Sector Perform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.