Research in Motion, the BlackBerry maker that has been bombarded with criticism this year, can’t seem to get a break.
Jeffries, the global securities and investment banking group, has downgraded RIM’s shares to “underperform" from “hold", according to the International Business Times. However, Jeffries analyst Peter Misek maintained a price target of $25 on the stock.
“Our checks and Quarterly Handset Survey indicate: New BlackBerry OS 7 phone sell-in okay, but sell-through is lackluster," IBT quoted Misek. “Weak sell-through of older models … QNX handsets are being rushed; New low-cost iPhone and low-end Android phones pressuring RIM in mid-range and low-end, respectively."
Earlier this week, a Canadian merchant bank that owns shares in RIM called on the struggling tech giant to explore its strategic options, including a potential sale.
“It is time for transformational change," Vic Alboini, CEO and Chairman of Jaguar Financial Corporation, said in a statement. “The Directors need to seize the reins to maximize shareholder value before more market value is lost."
RIM’s stock price has fallen about 80 percent over the last three years, plummeting from $149.90 in June 2008 to $29.59 on Sept. 2, according to Toronto-based Jaguar, which noted other shareholders also support its recommendations.
RIM"s stock was trading Friday at $29.86 on the NASDAQ as of 11:49 ET.
According to Zachs Investment Research, 10 analysts rate RIM a "strong buy" while three recommend a "buy." One analyst rates the stock a "underperform" while eight analysts have a "sell" rating. Another 25 analysts rate the stock a "hold," potentially reflecting uncertainty over the future of the embattled company.
