Sterne Agee Reiterates Neutral Rating on Research In Motion Limited

In a report published Friday, Sterne Agee Group reiterated its Neutral rating on Research In Motion Limited RIMM. Sterne Agee noted, “RIMM reported better revenue and a smaller than expected operating loss amid low expectations. Its cash balance again grew through smart working capital management. However, there were two negative surprises related to the pending launch of BB10 in late-January: (1) its favorable working capital trends will likely reverse due to higher expenses meaning cash usage and (2) its high-margin services business will likely see pressure as it transitions to new terms and pricing.” Research In Motion Limited closed on Thursday at $14.12.