- UBS comments on Research in Motion (NASDAQ:RIMM) saying that while they recognize the inherent flaws in a limited sample channel check, they believe the change in tone from Pearl launch (hardware upgrades) & recent checks (increasing new sub attach rates) is interesting. Demand & reorders appears to see no early signs of abatement. Regarding TMO USA adds, RIM reported on Sept 28 so it would be aware of add rates when providing guidance.
Sales trends at Marvell for its xScale processor appear strong with the ompany shipping as many as it can manufacture, based on firm's checks. While Marvell supplies a number of vendors, they believe Pearl/BlackBerry strength is contributing to the strength. Marvell supplies its xScale processor for the Pearl as well as the 8700 and 7130.
UBS previously pointed to the possibility that their estimates were likely conservative as the upgrade replacement rate implied in prior FY08 estimates indicated a deceleration (historically, the 2nd year of a replacement cycle has seen acceleration). They are raising PF FY08 EPS estimate (ex-options) to $4.86 from $4.45 to more accurately reflect views.
Tgt goes to $160 from $125.
Notablecalls: Expect to see buy interest in RIMM.
Sales trends at Marvell for its xScale processor appear strong with the ompany shipping as many as it can manufacture, based on firm's checks. While Marvell supplies a number of vendors, they believe Pearl/BlackBerry strength is contributing to the strength. Marvell supplies its xScale processor for the Pearl as well as the 8700 and 7130.
UBS previously pointed to the possibility that their estimates were likely conservative as the upgrade replacement rate implied in prior FY08 estimates indicated a deceleration (historically, the 2nd year of a replacement cycle has seen acceleration). They are raising PF FY08 EPS estimate (ex-options) to $4.86 from $4.45 to more accurately reflect views.
Tgt goes to $160 from $125.
Notablecalls: Expect to see buy interest in RIMM.
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