RIM Presents 'Tremendous' LT Buying Opportunity at Current Levels -Broadpoint.AmTech

Broadpoint.AmTech is out with a research note recommending shares of Research In Motion (Nasdaq: RIMM), saying near-term issues have already been discounted, presenting a "tremendous" long-term buying opportunity. The firm maintains its Buy rating on Research In Motion, but cut its price target from $115 to $65.

The firm sees several near-term challenges ("a perfect storm of events") facing Research In Motion, including:

• a massive product transition
  
• a shift in pricing strategy
  
• momentum for Apple (Nasdaq: AAPL), entrance of Google (Nasdaq: GOOG) and response coming from Nokia (NYSE: NOK), and
  
• a severe global recession.

Broadpoint.AmTech notes that it recently cut its unit estimates for the handset industry in North American to down 15% next year and in Europe to down 16%.

While the firm does see Research In Motion's gross margin issues remaining, it expects to see an uptick in February or May. Broadpoint.AmTech cut its FY10 EPS estimate on RIM from $5.75 to $4.36, versus the Street consensus of $4.03. The firm said its new EPS estimate is based on "a 27% cut in handset units and a 24% cut in subscriber additions."

With shares of Research In Motion up more than 5% to $41.65 today, Broadpoint.AmTech's lowered price target represents potential price appreciation of 56% from current levels.

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

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