Canaccord Adams Very Bullish On Research In Motion (RIMM), Sees A Number of Upcoming Catalysts

May 1, 2008 11:18 AM EDT

Canaccord Adams commented on Research In Motion (Nasdaq: RIMM) due to weakness in the stock related to news reports suggesting that AT&T (NYSE: T) will subsidize Apple's (Nasdaq: AAPL) new 3G iPhone. The firm questions the logic of such a giveaway saying, "The idea of giving away or massively subsiding iPhones is anathema to Apple and its desire to manage customer perceptions." They also said, "RIM's spectral advantage makes it the most profitable device for carriers."

They continue to see little threat to RIM from the iPhone, but rather continue to see the iPhone as a massive threat to Nokia (NYSE: NOK), Motorola (NYSE: MOT), and Palm (Nasdaq: PALM).

They view any weakness in RIMM as a buying opportunity, citing upcoming catalyst including: the launch of the 3G Blackberry, an expanding addressable market due to the 3G device, the ONLY wireless device capable of streaming multimedia to a large number of subscribers, and emerging market growth over next 18th months.

The firm reiterates their Buy rating and $180 price target on RIM, which currently trades at $127.70.

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