Data provided by McGregor BFA
All data is delayed
Loading...
See More

BlackBerry maker stages comeback

Nov 23 2012 10:26 Reuters
BlackBerry

TBlackBerry maker Research In Motion is making a comeback. (AP)

Related Articles

SA big driver of BlackBerry sales

BlackBerry thanks SA

RIM warns of network woes

Nokia, BlackBerry booming in SA

Canadian town feels BlackBerry's decline

RIM 'has a heartbeat' - analysts

 
Toronto - Shares of Research In Motion surged more than 15% in Toronto on Thursday on rising optimism about its soon-to-be-launched BlackBerry 10 devices, the company's response to Apple's iPhone and to Android-based smartphones.

National Bank Financial analyst Kris Thompson boosted his price target on RIM shares to $15 from $12. He said he believes there is more money to be made in the stock ahead of the early 2013 launch of RIM's make-or-break new line of devices.

It was the second vote of confidence this week for the Canadian company, which has struggled to compete with the iPhone and with devices running on Google's market-leading Android operating system.

On Tuesday, Jefferies & Co analyst Peter Misek, who has been one of RIM's most influential critics, raised his rating and price target on the stock.

RIM shares climbed to their highest level since May on the Toronto Stock Exchange on Thursday, rising C$1.55 to C$11.78 by early afternoon. The US market, where trade volumes usually top those in Toronto, was closed for Thanksgiving. 

Thompson, who has an "outperform" rating on RIM stock, said he raised his price target due partly to the "positive sentiment building in the industry" ahead of BB10's launch.

"The new management team is executing by maintaining the BlackBerry subscriber base, managing costs and cash, and seemingly readying a February 2013 BB10 global platform launch," he said in a note to clients.

Earlier this week, Misek said a favourable reaction from telecom carriers to the new devices and the BB10 operating system that runs them was behind his decision to lift his rating and price target on RIM.

The BlackBerry maker, a smartphone pioneer, hopes BB10 will rescue it from a prolonged slump. RIM shares peaked at over $148 in 2008 before diving more than 90%.

The stock is up more than 75% in the past two months as the launch date for the BB10 devices nears.

RIM promises its new devices will be faster and smoother than previous smartphones, and will have a large catalog of applications, which are crucial to the success of any new line of smartphones.   

Thompson said he now expects RIM to ship about 35.5 million devices in fiscal 2014, up from an earlier estimate of 31.6 million. RIM, whose sales slump has been particularly pronounced in North America, shipped 7.4 million devices in its most recent quarter, ended September 1.

RIM has said it plans to roll out a touchscreen version of its BB10 smartphone initially. Phones with the mini QWERTY keyboards that many long-time BlackBerry users rave about will come a few weeks later, while lower-end versions of both devices will be launched later in the year.

"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," Thompson said.

Analysts had expected the new devices to go on sale in March. But RIM said earlier this month it plans to launch them on January 30, leading many to speculate they will hit store shelves around mid-February.

Chief Executive Thorsten Heins told Reuters last week he is confident that the new BB10s will provide RIM with a framework for growth over the next decade.

Earlier this month, the new platform and devices won U..government security clearance, which would allow both US and Canadian government agencies to deploy the new smartphones as soon as they are available.


 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

rim  |  smartphones  |  blackberry
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
15 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

'Zuma's legacy will be judged by Nkandla'

The legacy of President Jacob Zuma is contingent on how he deals with the issue of upgrades to his Nkandla homestead, says Cape Town Archbishop Thabo Makgoba.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...