UPDATE: Jefferies Reduces PT to $10 on Research in Motion Following Negative Pre-Announcement

Jefferies reduces its price target on Research in Motion RIMM from $12 to $10 while reiterating its Underperform rating on shares. Jefferies notes, "RIM pre-announced a non-GAAP operating loss in FQ1 (May) due to lower handset volumes and ASPs. Our checks indicate FQ2 (Aug) could be worse Q/Q ahead of a likely Oct launch of BB10. We do not believe the hiring of strategic advisors portends an imminent sale of the company as we think BB10 (and Windows 8) needs to launch first. We cut our estimates, our target to $10 (from $12), and reiterate our Underperform." RIMM closed at $11.23 on Tuesday.