It appears Politicians are not the only flip floppers. The reason we should not follow analyst blindly.
Citigroup Global Markets analyst Jim Suva, talked about RIMM on early Feb (source: seekingalpha):
“Overall, we believe the points brought up during today’s call are highly supportive of our bull case on RIM. Concerns regarding financial services exposure have been largely debunked, in our view, and we think investors should be encouraged by what seems to be a very low replacement rate at Citi, and financial services in general…”
Mr. Suva reiterates his “buy” rating on RIM, and maintains a $140 price target.
Today, according to Barron’s, CitiGroup analyst thinks RIMM will go down significantly. Let me quote:
Research in Motion (RIMM) faces a prospective 25% reduction in market value if the U.S. slides into recession, says Citigroup. RIMM shares, already nearly 40% off the highs reached last fall, could drop to as low as $63 if the U.S. economy does, in fact, fall into recession, and the consequences radiate to the rest of the global economy.
I don’t know if this is from the same analyst. But allow me quote Mike Huckabee, I think the analysts at Citi should swicth to Decaf 🙂