Research In Motion (RIMM) BB10 Event: More Upside or Sell the News?
Investor sentiment into the event is sky-high with shares are up 152% from the September low of $6.22. Some are expected a "sell the news" reaction to the event, while others see continued momentum and upside.
Analysts at TD Securities note the set-up for the company is perfect given a lack of meaningful CES smartphone news, a lack of Mobile World Congress buzz, and of course Apple's (Nasdaq: AAPL) fall from grace. That said, given the amount of speculation and leaks, they wonder if any surprises could be in store. "App announcements/content deals would have the biggest impact," according to analyst Scott Penner. Also availability (recent speculation is North America on February 5), pricing (speculation is $149 on-contract pricing), will be important.
Still, Penner sees a Neutral impact from the event. "The uptrend related to the BlackBerry 10 product cycle anticipation and better sentiment could continue (Palm continued to rise another 50% post-launch before peaking four months into the webOS cycle). That being said, we have a negative fundamental bias to our neutral rating." Beyond positive near-term revision momentum, enterprise upgrades to BlackBerry 10 could be slower than some bullish expectations suggest.The company will be broadcasting the BlackBerry 10 launch event via webcast at 10AM ET - http://www1.rim.com/newsroom.html
Shares of RIMM are up 2% to $15.97 into the event.