Mon, May 28, 2012, 1:51 PM EDT - U.S. Markets closed for Memorial Day

Jefferies cuts RIM rating, sees delay to plans

Jefferies analyst cuts RIM rating, sees delays in plans to expand software beyond BlackBerrys

Associated Press – Fri, Feb 3, 2012 12:50 PM EST

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NEW YORK (AP) -- The maker of BlackBerry phones is delaying or even abandoning what has been rumored to be a plan to license its new operating system to Samsung Electronics, Jefferies & Co. said Friday, as it downgraded shares of Research In Motion.

Analyst Peter Misek also expects the company to back off or at least delay a tentative plan to launch a secure, subscription-based email and BlackBerry Messenger application for Android phones.

Instead, Misek expects new RIM CEO Thorsten Heins to continue RIM's strategy of going head-to-head against Apple Inc.'s iPhone and the phones running Google Inc.'s Android software.

That leaves no near-term positive news to expect out of the struggling phone maker, Misek said. He cut his price target on the shares from $17 to $15 and downgraded his "Hold" rating to "Underperform."

Shares of the Waterloo, Ont., company fell 1.6 percent, or 28 cents, to $16.89 in midday trading.

A representative with Research In Motion Ltd., had no immediate response.

 

4 comments

  • anonymous
    anonymous  •  3 months ago
    Re Canada's economy. People on the CBC are talking about leaving because there are jobs in China and they pay more too. Thank you Dalton...
  • anonymous
    anonymous  •  3 months ago
    Canada's economy is on the road to stagnation because it's sputtering. Economic indicators are showing the private sector is dead. Guess who and what killed the private sector? And there's no chance that will change. Eh.
    • James
      James 3 months ago
      Governments are supposed to make the people better and safer, and private sectors are supposed to improve the standards of living. Canada used to have one of the world's highest standards of living through relentless innovations and high skills respecting a well educated AND highly productive workforce free of toxic office politics and empire building. Yet for the last 40 years we have seen exactly these kinds of toxic office politicking and empire building that have forced all the well educated AND highly productive workforce out from the private sectors. How can Canada make people better and safer as they are being politicized and squeezed into oblivion as the workplaces are choked with deadwood, and mindless managements?
  • Dr No
    Dr No  •  3 months ago
    Why doesn't this epic fail of a company just declare bankruptcy and give what money they have left to their suffering shareholders (if there is anyone still stupid enough to be long in this dog)?
    • James
      James 3 months ago
      Because of the death of commonsense among the governments and too many of our population now being old and the new population don't care much about our country. There's more Canadian dollars being sent out of the country to other nations. How much money and jobs does Rim add to Canada? Better learn how to speak Indonesian soon.
  • James
    James  •  Toronto, Canada  •  3 months ago
    Rimm's share price will plummet despite Prem Watsa's desperate efforts. Rim management's lack of responses are entirely expected by the market, baked into a Rimm share price of $10 by March 2012 with further declines whatever Rim does or fails to do.
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