Why Did RIM Shares Soar on Black Friday?
Research in Motion (NASDAQ:RIMM) shares are getting a lift from upbeat comments on BlackBerry 10 made by National Bank analyst Kris Thompson, who believes there is more money to be made in the stock ahead of the early 2013 launch RIM’s make-or-break new products.
RIM’s new BlackBerry 10 phones, scheduled to go on sale in February, may turn out to be the life raft the company is hoping for, according to Thompson, who is predicting shipments could reach 35.5 million in the next fiscal year.
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Thompson raised his estimate from a previous 31.6 million to account for an additional month of availability and “a little extra for the positive sentiment building in the industry from our discussions,” according to a Bloomberg report. Most analysts had been expecting sales to start in March, Thompson said, but RIM said earlier this month it plans to launch them on January 30, leading many to speculate they will hit store shelves around mid-February.
Thompson lifted his price target on RIM shares from $12 to $15 and maintained his “Outperform” rating. According to a Reuters report, Thompson raised his price target in part due to the “positive sentiment building in the industry” ahead of BB10’s launch.
“The new management team is executing by maintaining the BlackBerry subscriber base, managing costs and cash, and seemingly readying a February 2013 BB10 global platform launch,” he said in a note seen by Reuters.
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