Wednesday, November 07, 2007

Research in Motion (NASDAQ:RIMM): Target upped to $180 at RBC Capital

- RBC Capital is upping their target on Research in Motion (NASDAQ:RIMM) to $180 from $120 based on: 1) RBC's Early Tech Adopter Panel and global store checks indicating a massive holiday season; 2) Pending handset catalysts across all wireless technologies, geographies and consumer/business markets; 3) conservative forecast of RIM's Smartphone market opportunity (1-2% global handset share) implies compelling upside to consensus.

Firm's broad-based global checks (US, Canada, Europe) and data from their RBC Early Tech Adopter Panel (3,600 responses) point to RIM's biggest ever Christmas quarter, with accelerating momentum on Curve, Worldphone, Pearl, 8800/8820 and pent up demand for CDMA/EDGE Pearl 2 (RIM may sell 5M+ Pearl 2's FTM). Competition (e.g. iPhone, Microsoft) is not in their view impacting RIM's momentum.

RBC's F08 estimates become $6.0B Revenue and $2.23 EPS ($5.9B and $2.16 prior) above street for $5.9B/$2.16. F09 outlook becomes $9.9B, $3.80 EPS ($9.1B, $3.36 EPS prior) vs. street at $8.6B/$3.18.

Notablecalls: What can I say. The momentum continues. Slowly but surely, analyst estimates and targets keep creeping higher. RBC's FY09 numbers represent the new Street high. Expect to see buy interest in RIMM. It now has $140-$150 written all over it.

2 comments:

William T. said...

Any thoughts on APKT? I have been following their business and they are doing well against Sonos and Cisco.

notablecalls said...

Judging from their latest earnings release business must be awesome :)

Seriously, no view on APKT here.

NC