RIM has a hard time in restoring its credibility

BlackBerry maker Research In Motion got forced to  discharge innovative devices on time  and offer something credible so that they could win back the trust of investors made suspicious by its missteps, as claimed by an analyst said on Tuesday.

In a note to clients, RBC Capital Markets analyst Mike Abramsky says he is cutting his price target on RIM shares to $29 from $35 and reduced its estimates for profit per share for the current fiscal year by 11 percent and for the coming fiscal year by nearly 19 percent.

He added that RIM stays as a potential buyout target because of to its proprietary messaging services, global subscriber base and strong patent selection. He assessed a takeout at $30 a share and named Microsoft, Cisco, IBM and Nokia as potential buyers.

Abramsky’s target is still fine with above RIM’s share price of around $23.50 on Tuesday; however, the change repositions RBC underneath the $31 mean average of analysts. Analysts’ predicts for the share price range from a low of $18 to a high of $75.

By February, RIM shares exchanged hands for as much as $70, but the stock has fell following a sequence of profit warnings, and the failed launch of its PlayBook competitor to Apple’s iPad.

RBC’s profit per share quotes for RIM of $4.95 for fiscal 2011, and $5 for 2012 are around 10 cents a share higher than the normal analyst estimate.

To urge the RIM’s board to take a more vigorous role to oversee management decisions as the company produces new products, Abramsky said RIM’s products and software have not been useful for years.

The company that once dominates the smartphone market with business-friendly devices; however, it has strived as Apple’s iPhone and later Google’s Android software have obtained market share.

According to Abramsky, BlackBerry maker has wasted its credibility with investors by taking back and missing its own forecasts.

RIM reported dismal earnings last Thursday, sending its shares sharply lower. It shipped far fewer BlackBerry smartphones and PlayBook tablet computers than either the company or analysts had prediction.

Abramsky said RIM might have an opportunity to turn things around still had a chance to turn its fortunes around.

RIM has introduce a set of refreshed phones over its existing software, and were planning on launching another batch early subsequent year using the QNX software that originates in the PlayBook.

Many are expecting that the long-awaited debut of Playbook includes features Android app player as well as email, calendar and extra functions long linked with the BlackBerry at a developers’ conference in October.