Cramer Says Research In Motion (RIMM) Will See $150

June 16, 2008 3:26 PM EDT

Discussing Research In Motion (Nasdaq: RIMM) on this afternoon's Stop Trading!, Jim Cramer addressed a concern which has recently presented itself to RIMM shareholders amid weakening consumer spending in the U.S.: is Research In Motion over-valued?

Considering the market cap and market share of Research In Motion compared to Nokia (NYSE: NOK), investors may understand why Cramer mentioned the issue: Research In Motion is about an $80 billion company controlling only 1% of the market, while Nokia is a $100 billion company controlling 40% of the market. With such a disparity between the two company's fundamentals, speculators are starting to wonder if Research In Motion's Blackberry could be the target of a bubble in the smartphone industry.

Taking the contrarian view, Cramer said he believes Research In Motion's 1% market share gives it "room to run." At the same time, although Nokia controls the majority of the mobile device market, the company has "no momentum", according to Cramer.

Cramer said Research In Motion will "blow through its 52-week high at $144", giving the stock a $150 price target.

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

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