Research In Motion Ltd. (RIMM) Stock Downgraded
An analyst downgraded shares of Research in Motion Ltd. Monday, citing a recent run-up in the stock's value and unknown impact the economy will have on a new product line.
Morgan Keegan analyst Tavis C. McCourt downgraded the BlackBerry maker to "Market Perform" or "Hold" from "Outperform" or "Buy."
While the share price has more than doubled since June 27 when the company posted a 73 percent jump in fiscal first-quarter profit, McCourt said current economic problems may affect sales of the company's 9000 product line and keep shares "range-bound."
McCourt also pointed to news from Research in Motion Co-Chief Executive Jim Balsillie that trouble in the financial sector is beginning to cause customer churn, and any layoffs in that sector could harm results. Churn rate is the number or percentage of customers who stopped service in the previous period.
On the positive side, the 9000 product line has enormous potential, McCourt said, as evidenced by past BlackBerry performance and the strength of the overall smartphone sector.
Morgan Keegan analyst Tavis C. McCourt downgraded the BlackBerry maker to "Market Perform" or "Hold" from "Outperform" or "Buy."
While the share price has more than doubled since June 27 when the company posted a 73 percent jump in fiscal first-quarter profit, McCourt said current economic problems may affect sales of the company's 9000 product line and keep shares "range-bound."
McCourt also pointed to news from Research in Motion Co-Chief Executive Jim Balsillie that trouble in the financial sector is beginning to cause customer churn, and any layoffs in that sector could harm results. Churn rate is the number or percentage of customers who stopped service in the previous period.
On the positive side, the 9000 product line has enormous potential, McCourt said, as evidenced by past BlackBerry performance and the strength of the overall smartphone sector.
Labels: Research in Motion Ltd., RIMM
posted by Stock Administrator @ 10:19 PM
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