Pessimism Continues: BMO Basically Says RIM is Doomed

Expecting a bad quarter from RIM? You may as well expect a bad year. 

Last week, we reported that Jefferies analyst Peter Misek issued a warning that Research In Motion will likely miss some of its targets. Earlier this week, both Canaccord Genuity analyst Mike Walkley and Northern Securities analyst Sameet Kanade reinforced this pessimism.

Now, the Bank of Montreal has stepped in to declare that RIM’s revenues and margin will continue to disappoint—not just this quarter, which ends this month, but in future quarters as well. BMO Nesbitt Burns says that average revenue per user and the company’s service margin will be under extra pressure over the next few quarters. Analyst Tim Long says that RIM’s execution and timing for the launch of BlackBerry 10 will make or break the company. Clearly, he’s leaning toward break at this point.

RIM shares were down again today, falling below $13. In 2008, the stock peaked at a high of more than $140, before plunging in value last year. The Waterloo-based BlackBerry Maker hasn’t been able to recover—even modestly—since.

Photo: IntoMobile