Tags: RIM | jump | price | target

Research In Motion Shares Jump After Analyst Raises Price Target

Friday, 23 Nov 2012 11:20 AM


A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Research In Motion Ltd. jumped as much as 13 percent in New York trading, following an 18 percent gain in Toronto yesterday on rising optimism over the BlackBerry maker’s newest smartphones.

RIM climbed 11 percent to $11.35 at 9:43 a.m. in New York after reaching as high as $11.62. The U.S. markets were closed yesterday for the Thanksgiving holiday. While RIM had rallied 29 percent in November through yesterday, it was still down 29 percent for the year.

RIM’s Canadian shares had their biggest gain in more than three years yesterday after National Bank Financial lifted its price target for U.S. shares to $15 from $12, saying new BlackBerry 10 sales should be better than expected. It followed a Nov. 20 report from Jefferies & Co. that said chances are improving that the new BlackBerry 10 smartphones will revive sales when they hit stores in February.

RIM should ship about 35.5 million BlackBerry 10 units next fiscal year, said National Bank’s Kris Thompson, up from a previous estimate of 31.6 million. Most analysts had expected sales to start in March, said Toronto-based Thompson, who rates RIM the equivalent of a buy.

RIM, based in Waterloo, Ontario, needs a hit with BlackBerry 10 models to start winning back market share lost to Apple Inc.’s iPhone and devices running Google Inc.’s Android software. Chief Executive Officer Thorsten Heins has been traveling the globe in recent weeks, meeting carriers and corporate customers to talk up BlackBerry 10’s features.

Thompson said that part of the reason he lifted his sales estimates was the “positive sentiment building in the industry.”

RIM Optimism

Eric Jackson, president of Naples, Florida-based Ironfire Capital LLC, is one skeptic who has been won over. After betting on RIM shares to fall in the past, Jackson said yesterday he recently bought the stock because he expects a surge of upgrades from loyal BlackBerry customers. He declined to say how many shares he acquired.

“Most are greatly underestimating how many loyal subscribers will upgrade to BB10 in calendar 2013,” Jackson said. “All those pending upgrades are currently not factored into the stock.”

In Canada, RIM shares fell 5.3 percent to C$11.39 following yesterday’s rally.

© Copyright 2014 Bloomberg News. All rights reserved.

   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved