Pacific Crest’s James Faucette this morning writes that Research in Motion (RIMM) sales in the U.S. “continued to deteriorate” during March, with the company’s “days of inventory” now “well above 30 days, which we believe is more than 3x what the carriers would nor- mally target; they are the highest DOI levels we have ever seen.”
Faucette, who maintains an Underperform rating on RIM stock, writes that sales in Europe, based on his “checks,” appear to have fallen “meaningfully” in March from February’s level, and may have been lower on a year-over-year basis as well.
“If RIM�s sales continue to slow in Europe as we have seen over the past few months, we believe it will likely lead to subscriber losses in the next one to two quarters,” writes Faucette.
Faucette sees a “fair value” of $10 for RIM stock.
RIM shares are down 35 cents at $14.35.
In case you missed it, The Wall Street Journal’s Will Connors, Anupreeta Das and Gina Chon on Friday ran an extremely dour piece about Research in Motion’s outlook, discussing the topic of potential takeovers. They cite Street sources saying the $7 billion market cap is too high for most bidders for the company, but that if the price of the shares decline, a bidder could step up for RIM’s intellectual property assets. The authors also write that Microsoft (MSFT) and Nokia (NOK) had talked about making an offer for RIM but never did so.
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