Shares in Research In Motion Limited (USA)(NASDAQ:RIMM)
got a boost and soared more than 35% in the past
week. Analyst at National Bank raised its price estimate of its shares
while maintaining its Outperform rating on the stock.
National Bank Financial's Kris Thompson said that the
launch of RIM's new operating platform Blackberry 10 should help its shipments,
raise subscriber base and enhance its cash position.
He said that for fiscal 2014, the company would ship
35.5 million units compared to an earlier estimate of 31.6 million units which
would give the company about 4.5 percent of the global share of smartphones.
The average selling prices per unit was revised
upwards to $280 from $260 by the end of May 2013.
"Let’s reiterate our short-term investment
thesis. Buy the stock ahead of the BB10 product launch when we expect shipment
estimates to increase, especially from U.S. brokers where a break in negativity
could lead to short covering and on-going stock momentum. The carrier
certification process is the key risk to our short-term thesis and shipments
estimates. Valuation still a moving target until sustainable business is
proven; and we’re far from proven today. Applying a fundamental valuation to
RIMM is tough; let’s be frank, F2014 EPS estimates are very uncertain. But if
we’re even half-way correct with our $2.3 billion EBITDA forecast and
management can stabilize the business on a recurring basis, then we’re off to
the races with a current EV of just over $3 billion."
I called for a $12 price for the past 7 months, it's amazing how slow these analysts are. Now $12 a share is a fair market value, anything above that becomes pure speculation. Let's get a closer look at the product and make sure they can make their q1 release before upgrading the price.
ReplyDeleteRIM has been and will be a game changer. They have been out of the market to too long the customers are fed up with marketing wars of Samsung and Apple. RIM already has it's own customer base and with the new OS, it will further capture more. I value the stock to be at $45 in 12 months.
ReplyDeletei agree and 2013 will be back to 150+ as research in motion will surpass the 100million subscriber mark and blast to 200 milion.
DeleteThe security aspect NFC payment system will all be entrusted to BB network
Every time an analyst farts, this thing moves 10% in a random direction. Book Value per share is $18, P/E invalid, forecasted earnings $@#!>???? Bought in at 11.40, and I think I'll hold for a while, even tho this rollercoaster is pretty wild
ReplyDelete