This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RIM Laps Up BlackBerry 10 Love

NEW YORK ( TheStreet) -- Shares of Research In Motion (RIMM) made big gains on Friday as the embattled Canadian handset maker received some much-needed love ahead of its forthcoming BlackBerry 10 launch.

On Wednesday, before the market's Thanksgiving break, National Bank Financial analyst Kris Thompson increased his RIM price target to $15 from $12, citing investor opportunities ahead of BlackBerry 10's arrival next year.

RIM confirmed earlier this month that its much-delayed BlackBerry 10 devices will debut at a launch event on Jan. 30, 2013, prompting speculation that the gadgets will be available shortly after.

"We think there is more money to be made ahead of the C2013 launch of BB10," wrote Thompson. "The new RIM management team is executing by maintaining the BlackBerry subscriber base, managing costs and cash, seemingly readying a February 2013 BB10 global platform launch."

Most analysts, he added, were expecting a March launch.

Thompson increased his estimate for RIM's BlackBerry 10 shipments in fiscal 2014 to 35.5 million units from 31.6 million units. "The shipment boost reflects about one more month of BB10 product availability plus a little extra for the positive sentiment building in the industry following our discussions."

RIM shares, which have tumbled more than 20% this year, rose 12.23% to $11.50 on Friday.

National Bank's Thompson is not the only analyst reappraising RIM.

On Tuesday, Jefferies analyst Peter Misek upgraded RIM to hold, citing strong carrier support for BlackBerry 10.

"Preliminary results from our quarterly handset survey indicate developed market carriers have a much more positive view of BB10 than we expected," he wrote, in a note. "With greater carrier shelf space and marketing support, we now believe BB10 has a 20%-30% probability of success."

The analyst also raised his RIM price target to $10 from $5.

Rocked by delayed product launches and fierce competition from Apple's (AAPL - Get Report) phenomenally successful iPhone and Google (GOOG) Android devices, the stakes for BlackBerry 10 are extremely high.

Nonetheless, more than 57% of respondents to a recent poll by TheStreet said that RIM will find salvation in BlackBerry 10. Just over 33% of respondents believe that this is unlikely, noting that the company's problems are too big.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $132.65 1.82%
GOOG $555.37 -1.71%
FB $81.91 0.47%
TSLA $231.55 6.01%
YHOO $44.36 -0.36%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs