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Brokerage Beat: Dendreon, Baidu, and Research In Motion Limited

Analysts weighed in on BIDU and RIMM after earnings, while DNDN scored a pre-earnings bullish note

by 4/29/2011 10:35:19 AM
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RIMM analystsTechnically speaking, the barrage of bullish brokerage notes isn't surprising, with BIDU tagging a new record high of $156.04 just yesterday. The stock is now on pace to end the month with a respectable gain of 8%, extending its 52-week climb to more than 143%.

Finally, in the wake of its lowered earnings forecast, RIMM has been a popular punching bag among the analyst crowd. National Bank downgraded the stock to "sector perform" from "outperform," RBC revised its opinion to "sector perform" from "top pick" and slashed its price target to $55 from $90, and Jefferies lowered its rating to "underperform" from "buy" and more than halved its price target to $35 from $80.

In addition, the stock was assaulted with price-target reductions from UBS, Susquehanna, Wedbush, Raymond James, Paradigm, and Barclays, who cut their targets to $60, $46, $55, $71, $72, and $77, respectively.

What's more, there could be plenty more negative analyst notes in RIMM's near future. According to Zacks, the stock harbors 18 "strong buys" and six "buy" ratings, compared to 19 "holds" and eight "sell" or worse recommendations. Plus, Thomson Reuters pegs the consensus 12-month price target at $69.24, implying expected upside of about 43% to RIMM's intraday low of $48.46 today.

Technically speaking, the shares of RIMM have surrendered more than 14%, at last check, with the stock trading south of the $50 level for the first time since October 2010. Furthermore, the security is now set to end the month beneath its 10-month moving average for the first time in six months. This formerly supportive trendline could now switch roles to serve as resistance.




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