RIMM: JMP Downgrades; Credit Suisse, RBC Cut Targets, Ests

The Street is beating up on Research In Motion again this morning, with a trio of bearish research notes. All three analysts sound similar themes: the company continues to lose ground against both the Apple iPhone and Android-based phones. All three analysts slashed earnings expectations for the company, as the company�s market share continues to shrink. As for the potential for a bidder to come to the rescue�don�t count on it, given a still-substantial market cap and a patent position that  is generally regarded as weak.

Here�s a look at this morning�s calls:

• JMP Securities analyst Alex Gauna cut his rating on the stock to Market Underperform from Market Perform, setting a target on the stock of $12, well below Friday�s close at $18.19. He trims his FY February 2013 EPS estimate to $2.80, from $4.10. He thinks the company is going to be hurt by more competitively priced Androids and iPhones. �Blackberry has the right idea in mind with BBX convergence and Android support; however, our recent experiences with the Bold and Playbook devices, conversations with Blackberry developers at Blackberry World and DevCon and the company�s track record of delayed or lacking device introductions leaves us skeptical the company can pull off its vision,� he writes in a research note. �If our skepticism proves accurate, the net result will be unit volume and ASP compression, which we are now modeling throughout our forecast horizon.�
• RBC Capital analyst Mike Abramsky, who maintains a Sector Perform rating on the stock, cut his target to $23, from $29. For FY 2012, he cuts his EPS estimate to $4.68, from $4.95; for FY 2013 he goes to $4.63, from $5. He notes that earning visibility has been reduced on �slowing sell-through and service disruptions.�
• Credit Suisse analyst Kulbinder Garcha maintains his Neutral rating, but cut his target to $20, from $30. For FY 2012, he cuts his EPS estimate to $4.28, from $4.72; for FY 2013 he goes to $3.70, from $4.80. The estimate cuts, he writes, reflect �an increasingly competitive environment, lackluster product launches and potential product delays.� He adds that due to ongoing share losses, �further meaningful cost cutting efforts will be required to avoid losses in the hardware business.� So what happens now? �Given inherent concerns with the existing platform, a relatively weak [intellectual property] portfolio and an enterprise value of $8.2 billion, we believe a takeout of RIM is unlikely. Ultimately we believe that although management may need to persevere through its transition to BBX, the visibility on success remains low. Given such choices, we expect the valuation multiple to remain depressed.�

RIMM this morning is down 53 cents, or 2.9%, to $17.66.