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Brokerage Beat: Research In Motion Limited, Cameco Corporation, and Las Vegas Sands

RIMM and CCJ were smacked with negative notes, while LVS found another fan

by 3/25/2011 10:30:16 AM
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BlackBerry maker Research In Motion Limited (RIMM), uranium issue Cameco Corporation (CCJ), and casino concern Las Vegas Sands Corp. (LVS) were all on analysts' radar today. However, to put today's fresh brokerage attention into perspective, we have to consider each stock's technical and sentiment backdrops.

Jumping right in... After offering up lackluster guidance, RIMM has garnered a round of negative analyst notes. Baird kicked things off with a downgrade to "underperform" from "neutral," trimming its price target to $46 from $60. In similar fashion, Gleacher & Co. slashed its price target to $72 from $80.

RIMM analystsMeanwhile, Goldman Sachs cut its price target to $57 from $63 and reiterated its "sell" recommendation, Caris downgraded the stock to "above average" from "buy" and reduced its price target to $70 from $75, and Deutsche Bank revised its rating to "sell" from "hold" and slashed its price target by $10 to $50. Furthermore, while Wedbush and Susquehanna upped their respective price targets to $61 and $50, the former reiterated its tepid "neutral" rating, while the latter underscored its "negative" opinion.

From a sentiment standpoint, there could be more bearish brokerage attention in store for RIMM. According to Zacks, the equity boasts 20 "strong buys" and six "buy" endorsements, compared to 19 lukewarm "holds" and just six "sell" or worse ratings. Plus, the average 12-month price target sits at $71.58, implying expected upside of 25% to the stock's intraday nadir of $57.05 today.

Technically speaking, the shares of RIMM gapped more than 10% lower at the open, and are poised to finish the week south of the round-number $60 level for the first time this year. Now, the security is testing its foothold atop its 32-week moving average, which is currently lingering in the $57.50 neighborhood. Should more analysts capitulate to the bearish bandwagon, a wave of additional downgrades and/or price-target cuts could exacerbate the stock's slide.

Moving on, analysts at RBC reduced their price target on CCJ to C$38 from C$50, but reiterated their "outperform" recommendation. From a broader sentiment standpoint, the analyst crowd is mixed in their opinion of CCJ, with Zacks reporting an equal amount of "buys" and "holds" for the security. On the other hand, more price-target cuts could be in the cards; the average 12-month price target on the equity sits at $43.38, Thomson Reuters reports, representing a premium of 40% to CCJ's closing price of $30.98 on Thursday.

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