Deutsche Bank Downgrades Research In Motion Ltd. (RIMM) to Sell

Deutsche Bank downgraded Research In Motion Ltd. (NASDAQ: RIMM) from Neutral to Sell and lowered their price target to $50, following disappointing results and guidance. The firm said the market dynamics are working against the company.

The firm comments, " We have remained neutral on the stock, in part, on the view that their new QNX OS could prove to be a viable competitor. We no longer see it this way. RIM will fragment itself as they support multiple run-times. The company also looks set to see meaningful margin compression as gross margins for the Playbook dilute corporate averages and they grow opex to support the new products. With no QNX on handsets until CY12, we think RIM will likely continue to lose share to Android smartphones whose prices are rapidly falling."

The firm also said the Co-CEO structure is a distraction. "We believe the multiple-choice approach to OS is a symptom of conflicting strategies internally. Moreover, it appears that the company is building duplicate working groups in many areas. This is not only expense, but is likely to hamper their ability to take decisive action."

For more ratings news on Research In Motion Ltd. click here and for the rating history of Research In Motion Ltd. click here.

Shares of Research In Motion Ltd. closed at $64.09 yesterday.

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