RIMM: Sell-Off Unwarranted, Says Bernstein, Sees Upside to $20
By Tiernan Ray
In the thicket of negative sell-side reports on Research in Motion‘s (RIMM) today, following its fiscal Q3 report last night, at least one analyst thought today’s sell-off was an over-reaction.
RIM shares today traded down $3.21, or 22.7%, to close at $10.91, reversing gains last night, as comments from management on the post-report conference call suggested some portion of the company’s secure messaging network service could be essentially given away for free in return for getting uptake with BlackBerry units being sold starting in January.
Bernstein Research’s Pierre Ferragu, who has a Market Perform rating on RIM stock, thinks a bit too much is being made out of change in the services model: