RIMM: Management Changes, Competition Doesn’t

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David Evanson and Michael Walkley

Forbes.com, Winter, 2012

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.”