J.P. Morgan Neutral on Research In Motion

J.P. Morgan Chase & Co. is out with a research report on Research In Motion

and it has a Neutral rating and a $24 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "RIM held a press conference saying they have restored normal service after a network failure on Monday. RIM stated again that the outage originated with a switch failure in Europe. This should have been a non-event due to redundancies RIM has built into its network. However, the company stated these failover systems didn't work. As a result, messaging traffic apparently bottlenecked in RIM's network and affected areas include EMEA, Africa, Argentina, Brazil, Chile and, according to earlier RIM commentary, North America. We calculate potential FQ3 EPS impacts below concluding that a 4% hit to our EPS forecast is a worst case scenario. Note, however, that RIM's service agreements with carriers are private and so there is a large margin for error in our calculations." Shares of RIMM closed at $23.61 yesterday.