Research In Motion (RIMM) shares are coming under pressure this morning after Raymond James analyst Sera Kim downgraded the stock to Market Perform from Outperform on a valuation basis.
That is the second downgrade of the stock in two days, following a similar move yesterday by RBC.
Kim notes that the company will report earnings for the fiscal second quarter ended August after the close on Thursday. She is looking for revenue of $1.37 billion and EPS of 50 cents, with 1.4 million subscriber adds and 3.15 million device shipments. On every measure, she is slightly ahead of the Street consensus. For the third quarter, she sees revenue of $1.54 billion and EPS of 55 cents, with 1.6 million subscriber adds and 3.6 million device shipments. She raised her EPS estimates to $2.04 from $1.98 for the February 2008 fiscal year, and to to $2.85 from $2.80 for FY 2009. And she upped her price target to $100 from $92.
Kim says RIMM remains �a great long-term growth story,� but that with the stock up 79% since reporting fiscal first quarter results, near-term catalysts are already factored in.� She says the stock �is getting ahead of itself,� and advises waiting for pullbacks to add to positions.