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Jefferies' Misek Again Raises PT on RIM (RIMM) after Smartphone Survey

December 13, 2012 7:24 AM EST
Get Alerts RIMM Hot Sheet
Price: $14.64 +12.36%

Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 6 | Down: 3 | New: 1
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For the second time this month Jefferies' analyst Peter Misek is raising his price target on Research In Motion Ltd. (NASDAQ: RIMM). Today, Misek took his price target up from $10 to $13, which is in-line with the current market price. Misek last raised the price target on November when he upgraded the stock from Underperform to Hold.

The price target hikes follow the firm's latest survey which surprisingly showed RIM had an okay Nov Q with developer support improving for BB10.

"We were surprised that our recent checks showed higher levels of support after developers got their hands on the SDK and dev alpha units," Misek notes. "RIM's near-term sales trends remain poor, but management is focused on emerging economies"

The firm raised FQ3 (Nov) estimates from $2.5B/$(0.52) to $2.7B/$(0.39) vs. St $2.7B/$(0.35). They think any BB10 sales will be minimal at best in Feb with almost all of the ramp in FQ1 (May), and for FQ4 (Feb) at $2.5B/$(0.39) they remain well below St's $2.8B/$(0.27).

The $13 price target is based on on 0.3x EV/revs to match Nokia's (NYSE: NOK) multiple.

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 $13.31 yesterday.


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