Friday, September 14, 2007

Research in Motion (NASDAQ:RIMM): RBC ups tgt to $110, estimates above consensus

- RBC Capital is out very positive on Research in Motion (NASDAQ:RIMM) upping their tgt to $110 from $83 saying they expect additional upside for RIM shares, on: a) Robust product momentum (Curve, Worldphone, Pearl 2, 8820) driving FTM results above expectations; b) Pearl 2 and affordable BlackBerry data plans seen to advance RIM into a 4x consumer market; c) Strengthening global drivers (Europe, SA, Latin AM, CDMA EV-DO); d) continued competitive advantages.

Sentiment is expected to further rise once RIM unveils Pearl 2, (launch CYQ3/Q4). A significant update, Pearl 2's stylish design, data speeds, iPhone-like browsing and compelling features may be viewed as a boost to RIM's further penetration into the 4x consumer market. RIM may sell 5M Pearl 2's FTM (vs. 2M Pearls sold since Sept/06 launch).

Global checks suggest RIM saw vigorous sales momentum Q2/Q3 from Worldphone, Curve, Pearl, 8800, 8820, others. Competition (eg iPhone) hasn't apparently yet dented RIM's momentum. Firm is increasing F08 estimates to $5.8B Revenue and $2.11 EPS ($5.6B and $1.99 prior) above street for $5.5B/ $1.99. Reiterates Top Pick.

Notablecalls: RBC is upping their ests above consensus and their comments regarding Pearl 2 are likely to generate some buy interest in this momentum darling.


manny said...

in my opinion this is one of the
very few stocks in existence
that even exceed the performance
of the products.

if the company keeps performing
as it does now, the stock will
continue to rise. i could see
a $200 price in the next 3 mnths.

UnderworldPrince said...

I have been looking for a pullback in RIMM for some time to get in. I finally gave up on the pullback and got onboard with an October call option. This stock just won't quit. I also plan to buy a Blackberry when their web browsing catches up with the iPhone, which I hope is the next product release.

manny said...

if there ever is a stock that
won't quit, this is it. keep
adding to your longs and you
will indeed have a great christmas.