Shares of Research In Motion Limited (USA)(NASDAQ:RIMM) gapped down this morning and fell as much as 5%. However, the stock has pared all its losses and now trading higher by 4% at $11.16 after hitting session high of $11.23. The stock has bounced back 10% from session low of $10.20
Will RIMM continue To Move Higher? Find Out Here
Shares of the company fell more than 10 percent on Tuesday on a report that Morgan Stanley analyst Ehud Gelblum had a bearish view on the stock.
AllThingsD had reported the story quoted Gelblum as saying that the BlackBerry maker's better-than-expected second quarter earnings were just an anomaly, and not the start of a trend, and was also pessimistic about the launch of the BlackBerry 10 in the New Year.
According to Gelblum, "We continue to believe BlackBerry 10 has a low chance of success. While some of the new features on BB10 seem innovative, we had a similar reaction to Palm's webOS when we saw it at CES in '09. Ultimately we believe BB10 is too late, and subs continue to shift to competitive devices."
RIM shares have been rsing due to the positive response that its new operating platform BB10 has induced in netork carriers that the comany is partnering. Some analysts also upgraded the stock based on this and expectations of high sales of the new Blackberry range of devices.
Gelblum noted two surveys to support his view, both showing little interest from customers or enterprise app developers in the BlackBerry or BlackBerry apps.
Among those who have upgraded the stock and/or raised its target price at CIBC World Markets, National Bank Finance and Jefferies & Co.
Almost all of them have recommended the stock for buying, based on the positive feedback received from network carriers.