Wall Street Continues to Bash Research in Motion

Shares of Research in Motion (NASDAQ:RIMM) are up by 55 cents, or 3.5 percent, at $16.16, seemingly due to rumors about some kind of takeover. Mike Abramsky of RBC Capital, who maintains a Sector Perform rating on RIMM stock and a $16 price target, commented this morning about the company’s recent announcement of a 2.0 upgrade to its “PlayBook” tablet computer’s operating system.

Abramsky, who thinks the upgrade “remains wanting” in features, recites a long list of criticisms about the update, especially the email:

“2.0 includes the long promised native email client (which RIM had promised would be available October 2011) but is still missing integration with RIM’s BES (BlackBerry, Enterprise Server) and BBM (BlackBerry Messenger), a glaring omission for RIM’s two largest markets: Enterprises and BBM fans. […] For enterprises running BES, PlayBook mail integration and device management requires RIM’s “Mobile Fusion”, its multi-platform mobile device management software, which has low penetration among RIM’s enterprise users.”

Here’s how Research of Motion is trading on the news:

Research In Motion Limited (NASDAQ:RIMM): RIMM shares recently traded at $16.18, up $0.57, or 3.65%. They have traded in a 52-week range of $12.45 to $70.54. Volume today was 23,755,069 shares versus a 3-month average volume of 21,471,200 shares. The company’s trailing P/E is 3.81, while trailing earnings are $4.25 per share.

To contact the reporter on this story: Gina Smith at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com