Positive Signs Turn Around a Research In Motion (RIMM) Bear
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Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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In a rare event of late, Research In Motion (Nasdaq: RIMM) is getting Wall Street love for the second straight day. Yesterday, Credit Suisse talked about the company taking market share from Nokia (NYSE: NOK). Today Morgan Stanley, a noted bear on the stock, upgraded share to a more market-neutral rating.
In a note out this morning, Morgan Stanley upgraded shares of the BlackBerry maker from Underweight to Equal Weight and raised estimates, citing stronger smartphone market growth, international BlackBerry unit volumes, and the initial sell-in of the Playbook.
Specifically, on the much hyped tablet Playbook, analyst Ehud Gelblum said "even under modest estimates, could add $0.40-0.60 to our EPS estimate that already tops out near $7."
Gelblum also said research shows that RIM should be able to add full Android App support to its Playbook tablet "with NO performance penalty just by adding the open source Dalvik code to its new QNX OS should it choose to do so."
In addition, with RIM likely adding the QNX operating system onto its Blackberries in late 2011 or early 2012, "this implies that a QNX/Dalvik/Android combo just might be the performance enhancing OS refresh that BB6 wasn't when we downgraded the stock last summer."
The firm raised Q4 EPS from $1.77 to $1.80 and revs from $5,686M to $5,736M. FY12 EPS goes from $6.29 to $7.23 and revs from $22,353M to $25,647M.
The firm said a base case price target on RIM is $71, a bull case is $88 and a bear case is $45.
Shares of RIM are up 1.3 percent today.
In a note out this morning, Morgan Stanley upgraded shares of the BlackBerry maker from Underweight to Equal Weight and raised estimates, citing stronger smartphone market growth, international BlackBerry unit volumes, and the initial sell-in of the Playbook.
Specifically, on the much hyped tablet Playbook, analyst Ehud Gelblum said "even under modest estimates, could add $0.40-0.60 to our EPS estimate that already tops out near $7."
Gelblum also said research shows that RIM should be able to add full Android App support to its Playbook tablet "with NO performance penalty just by adding the open source Dalvik code to its new QNX OS should it choose to do so."
In addition, with RIM likely adding the QNX operating system onto its Blackberries in late 2011 or early 2012, "this implies that a QNX/Dalvik/Android combo just might be the performance enhancing OS refresh that BB6 wasn't when we downgraded the stock last summer."
The firm raised Q4 EPS from $1.77 to $1.80 and revs from $5,686M to $5,736M. FY12 EPS goes from $6.29 to $7.23 and revs from $22,353M to $25,647M.
The firm said a base case price target on RIM is $71, a bull case is $88 and a bear case is $45.
Shares of RIM are up 1.3 percent today.
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