Analysts Are Divided Over The Fate Of BlackBerry

Analysts Are Divided Over The Fate Of BlackBerry A couple of notes on Monday morning, Research In Motion paint sharply contrasting perspectives pharmaceutical company with the BlackBerry.

Sterne Agee analyst Shaw Wu, RIM shares are reduced to "neutral" from "buy" and said it expects increased competition will hurt margins of Canadian society.

Dissenting opinion of Scotia Capital analyst Gus Papageorgiou calls the action "absurdly exaggerated" and posits that RIM has unique abilities to pay the bill in the coming years.

"RIM is a highly profitable company with a growing customer base, however, is trading as if the underlying business was in danger," wrote Papageorgiou, one of the few analysts who still maintained a relatively optimistic view of the BlackBerry manufacturer .

Instead, Sterne Agee Wu said that the main reason he did not say to customers to sell their shares of RIM is the intrinsic value of the company as a takeover target.

From RIM has hit a low of seven years $ 15.98 Friday, rose 3 percent to $ 16.50 on Nasdaq at mid-morning Monday.

Wu said that RIM's margins could take a hit after suffering a massive network failure and the pressure of rising prices due to competition from HTC Corp., Amazon.com Inc., Samsung Electronics and Apple Inc.

In early October, millions of customers on four continents was no service of BlackBerry email, messaging and navigation on their smartphone, after a series of failures in a private network from RIM.

"Network Outages ... is likely to pressure margins in services and software for both enterprise customers and carriers will require concessions and discounts," said Wu.

To Papageorgiou company's unique network RIM out plans for the measuring data and reduce network traffic for operators. "This is not an advantage that will disappear in the short term," he wrote.

RIM has also been criticized for poor performance in the face of strong competition from Apple's iPhone and iPad devices and the system of Google Inc. Android

Dear Android-based devices from the likes of Huawei China is expected to spread into new markets, where RIM has cut much of its recent sales growth.

Wu said he doubted that RIM can not meet analysts 'estimates' of its interim report.

RIM said in September it is expected to release between 13.5 million and 14.5 million smartphones in the third quarter ended November 26, it reports the results on December 15.

Analysts expect, on average, RIM to earn $ 1.22 per share on revenue of 5.31 billion dollars, according to Thomson Reuters I / B / E / S. This is the provident fund RIM proprietary $ 1.20 and $ 1.40 per share on sales of $ 5.3 to 5.6 billion.

Papageorgiou Scotland is one of the most optimistic analysts, forecasts of $ 1.34 per share.