RIMM: Management Changes, Competition Doesn’t

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Forbes.com, Winter, 2012. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

Following CEO change at Research in Motion (RIMM) with the immediate naming of Thorsten Heins as new CEO, Canaccord Genuity technology analyst Michael Walkley reiterated his HOLD rating and $15 price target on the company. Mr. Walkley said:

“While this change in management might positively impact RIM’s execution, we maintain our HOLD rating. With competing OEMs [original equipment manufacturers] introducing high-end smartphone products on more established software ecosystems and low-cost Android products pressuring RIM’s international sales, we believe sales and earnings will decline.”

He added, “While the change in management might reinvigorate the employee base, improve execution, or even increase interest from potential acquirers, we maintain our belief the new BB 10 OS will not stem ongoing market share losses to Android and iOS.”