UPDATE: Bank of America Reduces PT to $13.50 on Research in Motion on Continuing Challenges

Bank of America reduces its price target on Research in Motion

from $16.50 to $13.50 and keeps shares rated Neutral. Bank of America comments, "The future of RIM is highly dependant on a successful execution and positive market reception for BB10 platform. Unfortunately, the lack of adequate 28nm supply is a potential hurdle, which is likely to force carriers to place their bet on other competing LTE platforms slated for 2H12 release. This could keep fundamentals and earnings under pressure for much of FY13. The only silver lining is that RIM is likely to further reduce its cost structure under this scenario, yielding additional savings to the $1bl already announced." RIMM closed at $11.23 on Tuesday.