Markets & Finance

UBS Downgrades Research In Motion

UBS Financial downgraded BlackBerry-maker Research In Motion (RIMM) to neutral from buy.

Analyst Jeffrey Schlesinger says RIM shares have risen 50% in the past 2 months, due in part to market enthusiasm for the company's new BlackBerry 7100, launched in September. He says his research suggests the 7100 may not be a home run.

He sees some challenges. He believes slower deployment of the product could follow reports of product complexity and heavier-than-expected service burden on carriers.

Schlesinger sees $1.95 fiscal 2005 (Feb.) earnings per share, and $2.58 fiscal 2006 earnings per share. He says RIM faces risk from a patent dispute which could hurt earnings per share by 15%. He sees less upside for now and gives the company a $95 target.

The Aging of Abercrombie & Fitch
blog comments powered by Disqus