TORONTO – Shares in Research In Motion were up 12 per cent on Thursday, continuing positive momentum after a National Bank Financial analyst said he was increasing his price target for the BlackBerry maker.
Analyst Kris Thompson said he’s boosting his target to $15 per share.
“We think there is more money to be made ahead of the 2013 launch of BB10,” Thompson said in a research note.
Thompson noted that RIM’s new management team is maintaining the BlackBerry smartphone subscriber base, managing costs and cash, and seemingly readying a February 2013 BB10 global product release, a month earlier than expected.
“We expect momentum to continue,” he said.
Thompson said an earlier launch will be beneficial to Research In Motion (TSX:RIM).
“The shipments boost reflects about one more month of BB10 product availability, plus a little extra for the positive sentiment building in the industry from our discussions.”
RIM’s new BlackBerry 10 operating system — which will be unveiled at a Jan. 30 event along with its new line of smartphones — is widely considered a make or break product launch for the Waterloo, Ont., smartphone maker.
“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 ongoing stock momentum,” Thompson said.
On the Toronto Stock Exchange, shares in RIM jumped $1.26, or 12.32 per cent, to $11.49 in late morning trading.
Thompson said he has increased his estimate of BlackBerry shipments for fiscal 2014 to 35.5 million from 31.6 million, reflecting 4.5 per cent global market share, up from 4 per cent.
He said certification of the new BlackBerrys by wireless carriers is the key risk to his prediction and estimate of BlackBerry shipments. Carrier certification of the new devices can take time.
On Wednesday, shares in Research In Motion gained almost five per cent on the TSX even though it was reported that the U.S. National Transportation Safety Board had dropped the BlackBerry maker in favour of Apple’s iPhone 5.
Earlier this week, a prominent tech analyst gave RIM’s new operating system a small but improved chance of success.
Analyst Peter Misek of New York-based Jeffries & Company said Tuesday that he’s still giving the BlackBerry 10 operating system only a 20 per cent to 30 per cent probability of success.
Source: The Canadian Press, thecanadianpress.com