Analysts are getting a little concerned with Research In Motion’s future, due to their inability to participate in “mainstream smartphone industry growth” Wunderlich Securities analyst Matthew S. Robison downgraded the BlackBerry maker on Tuesday to “Hold” from “Buy.”
Although the PlayBook is beating out other tablets, except for the iPad, they will not be able to sell enough to offset a decline in mainstream consumer interest in BlackBerry Smartphones.
The analyst also lowered his target price sharply, to $46 from $76. Over the long term, Robison expects RIM to have a role supplying business-oriented devices, as well as “cloud-based” services through the BlackBerry network. But he expects the non-business consumer mix that the company gained over the past two years to “churn off,” that is, leave. Earnings, Robison added “will decline after 2013 and eventually grow again on demand that is largely associated with business users.” – Bloomberg Businessweek
Shares of the company (RIMM) were trading May 25, 2011 at $43.23 on the NASDAQ and are close to a 52-week low ($42.53; August 31, 2010).