RIM (RIMM) Analysts Remain Optimistic, Betting on M&A

Research In Motion (Nasdaq: RIMM) has been a hampered stock. Most analysts agree that the BlackBerry platform and product pipeline aren't strong enough for a sustained rebound.

That said, Streetinsider data has the following price target changes since RIM said it would take a $485 million provision related to the PlayBook media tablet:

• December 2nd, Jefferies trims from $18 to $14. Click here for more on that; and
  
  
• Baird cut its target from $20 to $15, still feeling shares are overvalued. Click here for more color.
  
  
• Today, National Bank cut its price target from $16 to $10. Click here for more on that.

Overall, the Street seems rather optimistic with the outlook for RIM, though many might be pricing in some sort of acquisition. Currently, National Bank holds the Street low price target at $10, while the high is $40. Data from Bloomberg has the Street's price target average at $20.30, or 18.4 percent higher than it's current trading price of just over $17.10.

Some have suggested, Reuters noted Tuesday, citing an analyst on the matter, that RIM should adopt Google's (Nasdaq: GOOG) Android or Microsoft's (Nasdaq: MSFT) Windows Phone platform.

But: 1) Android is already sort of peaking, and consumers might be looking for something different (but compatible with current apps), 2) Look at Nokia (NYSE: NOK) and how well it's done with Windows Phone. Not very, as it's stock price has been about halved over the last year.

With RIM basically betting the farm on QNX, which will be coming out in early 2012, it only makes sense for them to stay the course and find better, cheaper sourcing for the PlayBook tablet, so it can cut pricing on the device in order to get it into consumer hands. After all, its always better to have a portion of something than all of nothing.

RIM is up 0.7 percent in late-Tuesday trading.

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