Yesterday Piper Jaffrey analyst T. Michael Walkley cut his rating to “market perform” from “outperform”, citing concerns about growing competition which caused RIMâ€™s stock to fall to a 6-month low. Since then the stock has showed a small rebound on the word that UBS Investment Research reiterated their “buy” rating on the stock with a $95 price target. UBS believes that Piper Jaffrey has oversold on competition fears.
“We believe competitive concerns are overdone, although the CTIA trade show next week may reinvigorate some of these competitive concerns, we expect constructive comments on RIM’s earnings conference call (April 5) and capital markets day (April 18),”
JP Morgan has also came reaffirmed their position on the stock as â€œneutralâ€. Paul Coster an analyst for JP Morgan states,
“We believe RIM’s competition is slowly increasing as operators and handset (makers) present alternatives to the BlackBerry service and the RIM device. However, enterprise switching costs are high and deepening penetration puts RIM on track for continued strong growth,” he said in a note to clients.
Read more at Reuters…