Interesting -- the average investor appears to be more pessimistic than the average analyst. The mean price target is $13.55.
The downward spiral in the share price of Research In Motion Ltd. (11.030.322.99%) is continuing today, with the stock down nearly 4 per cent to fresh eight-year lows.
The latest unwelcome news concerning the once almighty BlackBerry maker came Wednesday night, when the company confirmed one of its most promising young executives, Patrick Spence, will be leaving after 14 years. He was in charge of RIM’s global sales strategy and has jumped to a different company.
Nasdaq-listed RIM shares hit a low so far today of $10.63 (U.S.) and are now precariously close to sinking below the psychologically important $10 level.
Interestingly, investors appear to be more pessimistic right now than the analyst community. The mean price target on the Street is $13.55 (U.S.), according to Bloomberg data. That’s only slightly less than the mean target of $13.70 on March 29, the date of RIM’s last quarterly earnings report. (The next earnings is due out June 15.)
That’s not to say the Street is overly bullish on RIM’s prospects right now. The majority of analysts -- 32 -- have hold ratings, while 16 of them have sell recommendations. A mere five analysts are recommending investors buy.
If not for the gloomy outlook that RIM’s business decline will persist, the stock is looking cheap. It has a trailing 12-month price-to-earnings ratio of 3.51 and 6.15 on a forward 12-month basis.