iPhone Launch Will Not Impact RIMM's Enterprise Business at AT&T -AmTech

July 11, 2008 11:58 AM EDT

American Technology Research is out this morning recommending investors use today's weakness to purchase shares of Research In Motion (Nasdaq: RIMM). The firm said it would be aggressive buyers of the stock at current levels as it believes Research In Motion "is weeks away from the beginning of an enormous growth cycle." The firm currently has a Buy rating and $205 price target on Research In Motion. With shares of RIMM trading under $113 today, AmTech's price target represents a potential return of more than 80% from current levels.

The firm said, "We don’t expect any impact on RIMM’s enterprise business at AT&T as a result of the current iPhone offering." AmTech believes Research In Motion and Apple have several distinguishing traits that create both advantages and disadvantages compared to each other:

• RIMM has a connectivity advantage as it uses always-on push connectivity
  
• RIMM has a "youth demographic" as IM and social networks are its lead applications. In contrast, the iPhone's lack of "push infrastructure creates a different experience."
  
• iPhone has a richer user experience, while Research In Motion's BlackBerry has a better communication platform.

AmTech believes the iPhone release could pose "some near-term headwinds for Research In Motion at AT&T as it focuses marketing efforts following the launch", but does not see this cutting "dramatically into this channel for RIMM and see plenty of room for upside at other operators."

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

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