I hate to pick on any particular analyst — especially one with as good a track record as RBC Capital’s Mike Abramsky — but this is hard to resist.
When we last visited Mr. Abramsky, he had issued a price target for Apple
of $70 — the lowest of all the analysts who track the stock — three weeks before the shares shot past $100. See Mike Abramsky’s bad Apple advice.
Well, he’s done it again, only on the other side of the trade, and this time with Research in Motion
, maker of the BlackBerry — the iPhone’s chief competitor.
On Jan. 20, two business days after he downgraded Apple to “underperform,” Abramsky upgraded RIM to “overperform” and raised his price target from $45 to $75. (link)
This morning, three weeks and a day later, RIM issued a warning that its fourth quarter earnings and margins will be coming in at the low end of its prior guidance — and well below the Street’s expectations. (See here.) The stock opened at $50.20, off nearly 7 points, and closed at $48.76, down 14.5%.
As an aside, last week, Abramsky was the co-recipient of iPhone Asia‘s tongue-in-cheek Dean (“Animal House”) Wormer award for bad advice. His firm’s initials, of course, stand for Royal Bank of Canada, and the publication was suggesting that Abramsky was favoring a Canadian company (RIM) over an American (Apple). See here. I find that hard to believe. Neither Abramsky nor RBC Capital’s spokespeople has responded to our requests for comment.