Yesterday, Research In Motion Limited (USA)(NASDAQ:RIM) stock has been downgraded to Sell from Hold by Canaccord Genuity which has set a price target of $10 a share for the handset maker saying that the recent share price appreciation are not justified by its fundamentals.
"Over the past month, RIM shares have markedly increased ahead of the January 30 launch of long-awaited high-tier BlackBerry 10 smartphones, Canaccord analyst T. Michael Walkley said.
"While initial sales of higher-ASP BlackBerry 10 smartphones should improve RIM's January and May quarter device sales and ASP mix, our checks and analysis of the global competitive landscape suggest a very low probability BlackBerry 10 sales can turn around RIM's long-term business trends," he added.
He noted that corporate customers, who bring in higher revenues per user, were dumping Blackberries in favour of iPhones or even Androids. The shift to BYOD is also lowering revenue from its enterprise customers while lower-priced Android smartphones in emerging markets were threatening the company's global sales and subscriber base.
But the thing is nobody really knows what to make of RIM.
While Walkley is taking a pessimistic view of the company, at the other end is Wes Worsfold who firmly believes in its resurrection story.
The president of Motek Mobile and the coordinator of the local BlackBerry Developer Group, Worsfold is among those people who are focusing less attention on the ups and downs of RIM's stock but on creating the kinds of consumer apps and games that will make people want to buy the next-generation BB10-based devices, a report in Yahoo Finance said.
"Developing apps for RIM is streamlined," he says. "There are lots of development options and help and support is always available from the RIM dev relations team. We can submit apps for BB10 in AppsWorld today."