Positive Developments from RIM's (RIMM) Blackberry Jam has Goldman Sachs Raising Numbers

September 26, 2012 12:47 PM EDT Send to a Friend
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Goldman Sachs raised FY13-FY15 revenue estimates on Research In Motion Ltd. (NASDAQ: RIMM) Wednesday by an average of 16% following positive developments from 2012 Blackberry Jam developers showcase on Tuesday.

While analysts at Goldman expected RIM's installed subscriber base to decline in the August quarter, the company said it now has about 80mn subscribers, implying growth of 2 million subscribers quarter-over-quarter. This was well above Goldman's expectations for a decline of 1 million subscriber decline and the consensus of a 600K decline.

"We believe the higher sub base reflects lower churn in anticipation of previously announced/expected competitive smartphones, as well as more aggressive pricing and expansion in emerging markets," the analyst said.

While revenue estimates were raised 16% on average for Our FY13-FY15, EPS change was minimal. FY13E/FY14E/FY15E goes to ($1.34)/($0.63)/($1.43) from ($1.31)/($0.64)/($1.37).

Some other notes from the firm were the latest features the BB10, including "Hub," "Flow," and "Peek" as new user interface functionalities and "Balance" as a work and personal device optimization feature. RIMM also said the launch remains on track for the first quarter of 2013 and company has been meeting with carriers to show off the new operating system and it expects testing to begin next month. In addition, RIM is attracting developers with a $10k commitment.

The firm is maintaining its Neutral rating and $9 target on RIMM.

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 $6.60 yesterday.


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