WATERLOO, Ontario-Research In Motion Ltd.’s stellar growth was dimmed slightly due to a downgrade from Bank of America Securities, which forced the company’s stock down from around $120 per share to about $115 per share. RIM’s shares were trading at about $115.39 Friday.
Bank of America lowered its rating on RIM’s stock from “buy” to “neutral.” The firm said the downgrade was due to the risks RIM faces from upstart challengers and from litigation snarls, and that the combination of such risks could pull at the company’s valuation.
“Our views on the company and industry remain positive, and we are not changing estimates or price target, although they will change after the stock splits on Friday,” the firm wrote in a research note. “We look for pullbacks, as well as more aggressive Blackberry rollout to get more constructive on the stock.”
During the past several months, RIM has enjoyed a renaissance as analysts agree that the company has hit its inflection point. Most research firms rate the company as an “outperform,” “buy” or “strong buy.”
