The analyst community is looking upon Research In Motion Limited (USA)(NASDAQ:RIMM) very favorably. Goldman Sachs is the latest name on the bandwagon as they have changed their rating of RIM from neutral to buy and increased its price target to $16 from $9. Like others, Goldman Sachs, sees great potential in RIM’s new smartphones, which are expected next year.
Will RIMM continue To Move Higher? Find Out Here
Shares of RIM went up 4% to $11.44 and through Wednesday’s close the stock was up 76% over the last two months. The firm expects a 30% chance of success of RIM’s BlackBerry 10 launch, which looks promising in the face of the company’s recent failures around new devices and product upgrades.
But even if BB10 doesn’t achieve the success as per predictions, due to the failure percentage being 70%, Goldman still has a positive expectation regarding RIM’s chances. They expect the company to outperform over the next 2-4 quarters because of higher average selling prices and improving margins following the BB10 launch.
CIBC World Markets increased its RIM price target to $17, from $8, earlier this week, citing reasons about the company being materially undervalue. National Bank and Jefferies & Co also expressed positive opinions about RIM, which led to the stock shooting up. But Morgan Stanley still retains its rating of un-investable for RIM stock.
Shares have gone up due to the hype surrounding the BB10 and RIM has to prove itself yet again to make all expectations and predictions come true. Since it is competing with Apple, Microsoft, and Google, it will be a tough battle indeed.