Citi on beleaguered RIM: ‘It’s worse than you think’

“More happy talk Research in Motion, this time from Citigroup analysts, who have a note out today entitled, ‘It’s Worse Than You Think, RIMM is Going to Miss Christmas & More; Reiterate Sell,'” Matt Phillips reports for The Wall Street Journal.

We do not believe RIMM is an acquisition target or the company is looking to break itself up for sale… We are lowering our target price from $20 to $15 and reiterate our Sell rating. Target price is based on revised earnings and a 50% discount to the current S&P500 P/E; this is lower than our previous 40% discount, but justified in our view given deteriorating fundamentals. Lower units are key driver of reduced EPS.

Read more in the full article here.

[Thanks to MacDailyNews Reader “GetMeOnTop” for the heads up.]

15 Comments

    1. Long before it was purchased by RIM, QNX was a great operating system for realtime applications.

      Hopefully that will survive and come to belong to someone who can keep it going.

    1. I would feel sorry for RIM if they had not brazenly attempted to ride on Apple’s tablet coattails, and had they not derided Apple with the “superior FLASH browser experience” advertising, and “Amateur Hour Is Over” nonsense.

      I feel that if RIM had never released, nor even talked about releasing, a tablet, and had just worked on steadily improving their BlackBerry products, RIM would be in a very good position right now.

      Instead, RIM invited comparison to Apple.
      – And we all know how that invariably turns out.

  1. Their patents are still worth something. But after webos, it seems clear that you have to offer more than just an OS to compete now. You need an ecosystem strategy.
    If they are not planning of selling themselves, I think they need to downsize themselves to a much smaller company that releases one new great phone a year and make the best business phones in the world. At the moment they will only survive as a niche market player.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.