RIM shares fall on analyst downgrade
Shares in Waterloo, Ont.-based Research in Motion fell more than six per cent Monday after an analyst scaled back his estimate for company earnings.
RBC Capital Markets’ Mike Abramsky cut his per share profit estimate to $1.20 US from $1.28 and set a share price target of $23 US, down from $29, citing fiercer rivalry from Apple’s iPhone and devices running Google’s Android software.
RIM’s stock had recovered from its worst low, when it was down $1.19 on the Toronto Stock Exchange Monday, to close down 72 cents, or 3.84 per cent, at $18.04.
It has fallen 88 per cent from its high of $148 in mid-2008.
The firm suffered a widespread service outage in October and in the same month announced that it was delaying the launch of an upgraded operating system for its PlayBook computer tablet until February 2012, as it wasn’t up to its standards at this point.
RIM reported in September that net earnings dropped 58 per cent to $329 million US, or 63 cents per share, in its second quarter from the same period a year earlier.