With U.S. Market Closed, RIM (RIMM) Rockets Higher
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Research In Motion Ltd (NASDAQ: RIMM) is indicated to open 14 percent higher Friday, catching up from action in Toronto on Thursday while the U.S. stock market was closed for Thanksgiving. Shares of Research In Motion rose 18 percent to close at C$12.06.
The upside followed a positive research note from National Bank, which raised its U.S. price target from $12 to $15 on positive comments about the new BB10 phone, which is scheduled to go on sale in February.
National Bank analyst Kris Thompson sees BB10 phone sales of 35.5 million next year, up from his prior estimate of 31.6 million. He lifted his estimates to account for an extra month of sales, as many didn't expect sales to start until March. He also cited "a little extra for the positive sentiment building in the industry from the discussion."
BB10 is testing well with carriers and they are pushing for its success as the 3rd smartphone ecosystem behind Apple's iOS and Google's Android.
While Thursday's jump in the stock is colossal, other analysts are saying 'not so fast.' Just Wednesday, MKM's Michael Genovese said while excitement is building for BB10, nothing has been gained. He said the real test for the company will come in 4QFY13 and 1QFY14, after the BlackBerry 10 has been launched, as the long-term viability of RIMM is dependent on its success. He said while carriers appear to like the new device he thinks this will overshadowed by a lack of consumer demand, with most high-end users having moved on from BlackBerry products.
The upside followed a positive research note from National Bank, which raised its U.S. price target from $12 to $15 on positive comments about the new BB10 phone, which is scheduled to go on sale in February.
National Bank analyst Kris Thompson sees BB10 phone sales of 35.5 million next year, up from his prior estimate of 31.6 million. He lifted his estimates to account for an extra month of sales, as many didn't expect sales to start until March. He also cited "a little extra for the positive sentiment building in the industry from the discussion."
BB10 is testing well with carriers and they are pushing for its success as the 3rd smartphone ecosystem behind Apple's iOS and Google's Android.
While Thursday's jump in the stock is colossal, other analysts are saying 'not so fast.' Just Wednesday, MKM's Michael Genovese said while excitement is building for BB10, nothing has been gained. He said the real test for the company will come in 4QFY13 and 1QFY14, after the BlackBerry 10 has been launched, as the long-term viability of RIMM is dependent on its success. He said while carriers appear to like the new device he thinks this will overshadowed by a lack of consumer demand, with most high-end users having moved on from BlackBerry products.
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