Research In Motion (NASDAQ: RIMM) was upgraded by Zacks from an “underperform” rating to a “neutral” rating in a report issued on Wednesday. The firm currently has a $10.00 target price on the stock.
Zacks’ analyst wrote, “We are upgrading our recommendation on Research In Motion to Neutral, solely based on its extremely low current valuation, which plunged nearly 74% in the last year. For the first time since December 2003, the stock price of the company tumbled below $10 per share. We believe at this stage, further downslide of the stock price is a remote possibility. Meanwhile, Research In Motion remains in dire strait as management has forecasted an operating loss in the first quarter of fiscal 2013. Further, the company hired investment banks, JPMorgan Chase & Co. and RBC Capital Markets, to evaluate various strategic options including the sale of the company as management is unsure about its future prospects. So far Research In Motion has failed to provide any time frame when its free fall will ultimately end and is delaying the launch of its much hyped QNX based phones. We do not find any immediate growth catalyst for the company. “
Shares of Research In Motion traded up 1.65% during mid-day trading on Wednesday, hitting $10.15. Research In Motion has a one year low of $9.57 and a one year high of $38.06. The company has a market cap of $5.232 billion and a P/E ratio of 4.50.
Research In Motion last issued its quarterly earnings data on Thursday, March 29th. The company reported $0.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.81 by $0.01. The company’s revenue for the quarter was down 24.6% on a year-over-year basis. On average, analysts predict that Research In Motion will post $-0.02 earnings per share next quarter.
Other equities research analysts have also recently issued reports about the stock. Analysts at Goldman Sachs (NYSE: GS) reiterated a “neutral” rating on shares of Research In Motion in a research note to investors on Wednesday, May 30th. Separately, analysts at ThinkEquity reiterated a “hold” rating on shares of Research In Motion in a research note to investors on Wednesday, May 30th. Finally, analysts at BGC Financial reiterated a “sell” rating on shares of Research In Motion in a research note to investors on Wednesday, May 30th.
Research In Motion Limited (RIM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market.
