Citigroup Analyst Sees Dim Future For Research In Motion Limited (RIMM)

Citigroup Global Markets analyst Jim Suva maintained his "non-consensus" Sell rating for shares of Research In Motion Limited (Nasdaq: RIMM), while raising his target price for the stock from $52 to $55.

Suva said that he didn't want to own any shares of Research In Motion Limited when Verizon Communications Inc. (NYSE: VZ) gets the Apple Inc. (Nasdaq: AAPL) iPhone, which he believes will happen in the 4th quarter of 2010 or the 1st quarter of 2011.

Still, Suva raised his price target because of lower taxes, slightly higher sales and EPS, and a valuation methodology adjustment.

The Citigroup Global Markets analyst wrote, "Sales & units were below expectations this quarter; ASPs of $311 were below expectations of $320; gross margins in 2H of the year to be in the low 40s% vs. 44.5% in the May quarter; North America continue to underperform despite the belief of the enterprise coming back; inventory adjustment for a customer that, given the size of the unit shortfall this quarter, we believe is a North America carrier."