AmTech reiterates BUY:
AmTech believes RIMM’s fundamentals are still strong. In regards to the increased spending from the normally frugal management team, AmTech does not “think investors will have to wait long to see a payback this time around.” The firm recommends buying on the pullback.
Bank Of America reiterates BUY:
BofA thinks RIMM’s operating leverage will come back after all their new products launch. Ultimately the bank remains very positive on the smartphone market and RIMM’s ability to succeed in it.
Merrill Lynch reiterates BUY:
Merrill says to buy going into RIMM’s 2nd half product releases.
Oppenheimer maintains OUTPERFORM:
Oppenheimer views weakness as a buying opportunity. The firm believes the increased spending will create greater market share and more operating leverage.
Pacific Crest maintains OUTPERFORM, target raised from $136 to $165:
PacCrest got the pullback they expected and are happy expectations are now more reasonable. While they aren’t confident in operating margins rebounding, they see RIMM as the leader in the smartphone market, a market they are very bullish on.
Citi maintains BUY, target cut from $165 to $160:
The firm believes in RIMM’s strategy to ramp up spending to propel growth.
Deutsche maintains HOLD:
Deutsche didn’t think the quarter was all that bad, but they were very disappointed by the guidance, the gross margin miss, and the greater than expected operating expense increases. The bank is unsure where RIMM’s growth is going to come from.
JMP Securities cuts from Outperform to MARKET PERFORM:
JMP downgraded RIMM primarily based on the poor quarter and guidance. The firm lowered their FY09 EPS estimates due to increased spending.