Research In Motion Limited (USA)(NASDAQ:RIMM) shares
are up another 12% in the pre-open session after gaining about 35% in the past
couple of weeks.
This morning, analyst at Goldman Sachs upgraded the
stock to "buy." The brokerage firm lifted the price target by $7 to
$16.
The firm noted that "We expect RIM's results
will exceed Street estimates over the next four quarters," analysts said.
Goldman analysts said the Jan. 30 launch of the new BlackBerry 10 may offer a
positive risk/reward. "We now assess a 30% chance of success for BB10
given positive early reviews, broad-based carrier support, attractive features
and interest by carriers and consumers in broadening the field beyond
Android/iOS," analysts said.
Last
week, the stock was up 35% analyst at National Bank lifted its price
estimate of its shares while maintaining its Outperform rating on the stock.
In other news, Nokia’s
agreement dispute with Research In Motion has gone in all the wrong ways
possible. A Swedish arbitrator overseeing the couple’s spat over a license for standards-essential
patents of Nokia that RIM is not supposed to sell devices with the help of the
Wi-Fi technologies of the Finnish company until it pays royalties on them.
The row between the two
companies entails a 2003 licensing contract that approved RIM of using some of
the standards-essential patents of Nokia. The BlackBerry manufacturer assumed
that Wi-Fi patents of Nokia were included in that agreement, reasoning that
they must be a part of any contract associated to standards-essential patents. However,
in Nokia’s opinion, they were certainly not. The two companies started fighting
over the issue. A year back, they had gone into arbitration. Now, the tribunal
has heard their arguments and has come to the conclusion that Nokia’s Wi-Fi
patents were not under the 2003 contract.
This is a huge deal since
RIM is already selling a group of hardware that uses the patents and it has
been doing so since years. Nokia has filed lawsuits in Britain, Canada and the
US to implement the ruling of the arbitrator.
It seems that the big investment bank wants to sell all the stocks of Rimm. How else there can be a strong buy recommendation for a company which just have lost a major dispute and is going to have to pay one of the worst competitor a sum which is atleast 300 million dollars in total.
ReplyDeleteNo kidding! RIMM is toast. Pump and dump at it's finest
ReplyDeleteYou are mistaken. Morgan Stanley issued a strong sell just yesterday for RIMM. RIMM wont have to pay damages, just a royalty for essential standards. Like everybody else
ReplyDeleteAll gurus and pundits! please, keep silence for a while... I had the chance to try a BB10 (dev alpha) and even if is still a beta, it performed very well, with a fresh interface and a very reactive touch screen.
ReplyDeleteI think Rimm has a good chance of picking up for the following reasons:
ReplyDelete1. outside NA it is still a market leader, due to the free messaging service
2. it has rock solid encryption and security, a plus for all businesses
It can still take advantage of the fact that both Apple and Android spy on their users, which is unnerving.
Does anyone actually read their financial reports? Worldwide, they have increased their subscriber base every year, just not in North America. They have large cash reserves and haven't stopped spending on R&D. They aren't dead yet.
ReplyDelete