Analysts Cut Their Price Targets On RIM Stock After Poor Results Declared Yesterday

Posted on Jun 29 2012 - 1:17pm by Editorial Staff

Research In Motion yesterday announced poor result, job cuts or BlackBerry 10 delay was not the only thing, but the company saw a down in stock prices by 13.25% (huge). Wall Street analysts said that the Waterloo-based company could run out of cash, Reuters reports. The publication reports that at least 10 brokerages cut their price targets on the stock, with some by as much as 50 percent. Here is what different analysts said:

“If RIM continues to be run as it is, we believe that the company will eventually fail,” Nomura Equity Research said.

“We do not expect RIM to successfully drive a turnaround of its financials, even with the launch of BB10 next year,” the brokerage said in a note to clients

“Given RIM’s cash burn, BB10 can’t come soon enough,” Barclays said in a note to clients.

“We believe fundamentals continue to get worse and RIMM could run out of cash and need to raise capital within two years implying that as time rolls forward, if we are correct, the value of RIMM continues to go lower,” the Citi analysts said.

“We expect more write-offs and impairments to RIMM assets and we question if RIMM’s new BB10 products will even matter as it may be too little too late,” the analysts said

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.