Scotia Cuts Research In Motion Rating

Analyst Gus Papageorgiou says the handheld device maker's stock is far more expensive than any of its peers

Scotia Capital downgraded Research In Motion (RIMM ) to sector perform from sector outperform.

Analyst Gus Papageorgiou says the stock is far more expensive than any of its peers, and notes shares of the maker of Blackberry handheld devices have appreciated 26% in the past two trading sessions. At the current price, he sees more near-term downside risk than upside. He believes now is a good time for trading-oriented accounts to take profits.

Papageorgiou thinks longer-term fundamental accounts should maintain their strong core holding in RIMM. He says he's confident RIMM's prospects are very strong over the next two years, however, some near-term uncertainties remain.

He sees 13 cents fiscal 2004 (Feb.) earnings per share, and $1.00 in fiscal 2005. He has a $27.00 12-month target.

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