Analysts’ optimism on Research in Motion (NASDAQ:RIMM) seems to have come back this past week. First, Pacific Crest reported that they are still bearish on RIM, but less so now as the stock is at its life-time lows. [1] The report mentioned that there won’t be any meaningful declines in service revenues for the company until the May 2012 quarter despite users experiencing BlackBerry services interruption and outages in the past (see RIM’s BlackBerry Service Disruptions a Blow to its Turnaround). RIM’s stock has taken a beating from a high of $70 at the beginning of the year to $18 as of today as it continue to struggle against Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) in the smartphone and tablet market.
See our complete analysis for RIM stock here
According to another report, Omega Advisors said that RIM’s new operating system will help the company rebound. [2] We also believe that the company’s overhaul of its smartphone operating system from BlackBerry to QNX remains the only hope. We expect this migration to complete by early 2012. However, according to a report, the QNX migration could get delayed beyond the official Q1 2012 release. ((RIM: Barclays Cuts To Hold On QNX Delays, Barron’s, November 8th, 201)) If such thing happens, it will be another setback to the company and all the optimism around RIM’s comeback could vanish.
Our $26 price estimate for RIM stock is about 40% above market price.
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Notes:- RIM: Pac Crest Still Bearish, But Less So, Barron’s, November 10th, 2011 [↩]
- RIM’s New Operating System Will ‘Surprise,’ Omega Advisors’ Cooperman Says, Bloomberg, November 12th, 2011 [↩]
