BlackBerry (RIMM) Hardware + Services Worth $16/Sh; MDM BYOD Software Could Be Worth Another $16/Sh- Jefferies
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Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade RIMM Now!
Jefferies analyst Peter Misek reiterated his Buy rating and $19.50 price target on Research In Motion Ltd. (NASDAQ: RIMM) (NASDAQ: BBBY) following the post BB10 sell-off.
"We believe the market is overly focusing on the perceived success/failure of
the Z10/Q10 and overlooking RIM's software opportunities in mobile device
management (MDM) and BYOD," Misek said. "After performing a scenario analysis and a
DCF-SOTP analysis, we conclude even an enterprise niche-based BBRY but with
bullish services adoption would be worth $16. In addition, a successful MDM
BYOD business could be another $16 on top."
Misek expected a March launch and highlighted a likely Feb Q miss versus the consensus (JEF $2.5B/$(0.42) vs. St $2.9B/$(0.31)). However, he said the Street is also too pessimistic in the May Q and estimates $3.2B/$(0.09) versus their $4.2B/$0.33. "We do not think the Street is incorporating the high carrier support (e.g., $600 ASP and volume commitments) into estimate," he said.
For an analyst ratings summary and ratings history on Research In Motion Ltd. click here. For more ratings news on Research In Motion Ltd. click here.
Shares of Research In Motion Ltd. closed at $12.98 yesterday, with a 52 week range of $6.22-$18.32.
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"We believe the market is overly focusing on the perceived success/failure of
the Z10/Q10 and overlooking RIM's software opportunities in mobile device
management (MDM) and BYOD," Misek said. "After performing a scenario analysis and a
DCF-SOTP analysis, we conclude even an enterprise niche-based BBRY but with
bullish services adoption would be worth $16. In addition, a successful MDM
BYOD business could be another $16 on top."
Misek expected a March launch and highlighted a likely Feb Q miss versus the consensus (JEF $2.5B/$(0.42) vs. St $2.9B/$(0.31)). However, he said the Street is also too pessimistic in the May Q and estimates $3.2B/$(0.09) versus their $4.2B/$0.33. "We do not think the Street is incorporating the high carrier support (e.g., $600 ASP and volume commitments) into estimate," he said.
For an analyst ratings summary and ratings history on Research In Motion Ltd. click here. For more ratings news on Research In Motion Ltd. click here.
Shares of Research In Motion Ltd. closed at $12.98 yesterday, with a 52 week range of $6.22-$18.32.
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