Fears are mounting that the Torch, RIM’s latest BlackBerry, may not hold a candle to the iPhone. The realization has led an analyst to downgrade the company’s rating to neutral from outperform, and to say that last week’s release of the BlackBerry Torch was “decent, but nothing great.” As of yesterday, the company’s stock has fallen $3.35 a share since Friday, and the slide is continuing today.
In addition to downgrading the stock, Wedbush analyst Scott Sutherland also cut his price target on the company’s stock to $57 a share from $65, reports MarketWatch. The stock is now trading at $49.88. Sutherland wrote in a report that AT&T (NYSE: T) is likely selling one to two new BlackBerrys every hour, and while that’s a steady rate, it is “modest in comparison to recent iPhone, Droid and EVO launches.” He estimates that RIM (NSDQ: RIMM) will ship about 750,000 Torches during its current fiscal quarter.
The reaction to opening day on Thursday was indeed mixed when it came to selling the hybrid touchscreen/keyboard device, the WSJ reports. Checks revealed at AT&T stores no lines, wrote Citi analyst Jim Suva. Likewise, Goldman analysts said results were