AmTech Raises Price Target on Research In Motion (RIMM) to $205

June 16, 2008 12:23 PM EDT

American Research Technology raises its price target on Research In Motion (Nasdaq: RIMM) from $165 to $205. The firm maintains its Buy rating on the stock.

The firm recommends investors buy shares of Research In Motion ahead of the company's Q1 earnings report, expected out on June 25, as AmTech believes "expectations for August guidance are low" and sees the potential for an upside surprise. AmTech says it has been meeting with money managers in regards to Research In Motion for the last three weeks and has concluded that "many investors believe RIMM is the best growth story in tech..."

AmTech believes Research In Motion could report strong Q2 August due to:

1. a very strong ramp at Verizon (NYSE: VZ)
   
2. its belief that Europe will accelerate through the summer
   
3. the front-end shipments of Bold, and
   
4. Sprint (NYSE: S) providing an incremental boost for the first time in a long while.

The firm raised its Q1 EPS estimate to $0.03 higher than the Street consensus of $0.85, its FY09 pro-forma estimate to $4.60, versus the consensus of $3.86 and its FY10 estimate to $6.80, versus the consensus of $5.29.

AmTech's positive note could be pushing shares of Research In Motion higher today: the stock gapped incrementally higher than Friday's close, but has since gained substantial ground and is now up about 5% to $139.55. Based on today's most recent trade, AmTech's $205 price target represents a potential gain of more than 45%.

Research In Motion Limited engages in the design, manufacture, and marketing of wireless solutions for the mobile communications market worldwide.

Related Categories

Analyst Comments
Insiders' Blog

Stocks Mentioned

Related Entities

• American Technology Research

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?