RIM stock soars on upbeat analyst outlook - Mobile World Live

RIM stock soars on upbeat analyst outlook

23 NOV 2012
Thorsten Heins

Shares in RIM surged by 18 percent yesterday on the back of another endorsement of the company’s as-yet-unseen new BlackBerry line.

Kris Thompson, a National Bank analyst in Toronto, estimated that the firm will sell 35.5 million BlackBerry 10 (BB10) smartphones in the next fiscal year, up from a previous estimate of 31.6 million.

In a research note, Thompson said he had revised his estimate to account for an additional month of availability and “a little extra for the positive sentiment building in the industry from our discussions.”

"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 added.

According to Bloomberg, RIM’s shares rose to C$12.06 at the close in Toronto yesterday, the biggest gain since April 2009 – and reduced the stock’s loss this year to 19 percent. Trading in New York was closed for Thanksgiving but the stock had gained 5.7 percent to US$10.26 there on Wednesday.

Earlier this week, RIM had been boosted by comments from Jefferies & Co analyst Peter Misek – usually a fierce critic – who noted that operators had adopted “much more positive view of BB10 than expected”.

The first BB10 smartphones will be unveiled by RIM at a launch event on 30 January next year, and are likely to ship the following month.

“Most are greatly underestimating how many loyal subscribers will upgrade to BB10 in calendar 2013,” Ironfire Capital’s Eric Jackson told Bloomberg. “All those pending upgrades are currently not factored into the stock.”