After Barron’s recommended to short the stock, Credit Suisse comes out that the RIMM stock still has an upside to the mid-$70s. Just goes to show you how RIMM is and will be such a volatile stock in the near future. RIM is at a cross-roads, it is expanding fast but the competition is picking up quick with it’s own hardware offerings and the impeding patent-infringement lawsuit does not help at all. RIM is definantly doing the right thing by licensing it’s technology to 3rd party hardware vendors but is it too late?
Here is the article from Forbes:
Research In Motion (nasdaq: RIMM – news – people ), Credit Suisse First Boston maintained a “neutral” rating for the maker of handheld devices, saying the Blackberry will remain a core offering for mobile operators. “We believe the share price reaction to recent newsflow was overdone and see upside to the mid-$70s, but continue to expect high levels of volatility given the high valuation sensitivity to changes in growth expectations,” it said. Cingular’s recent formation of a Business Markets Group “highlights the increasing emphasis being placed by operators on the mobile enterprise market, which supports our view that Research In Motion’s addressable market will continue to see rapid growth over the next several years,” CSFB said. However, the research firm noted shares will likely be pressured in the near-term. “Competitive pressures are likely to increase as 3G networks are more widely deployed, limiting upside to already aggressive long-term expectations.” CSFB lowered its 12-month price target to $75 from $85 and said it expects mixed news over the next few months. “While we expect new Blackberry-enabled handset announcements and additional operator launches to serve as positive catalysts over the next few months, we also expect to see operator announcements of enterprise mobile data service launches utilizing competing platforms, highlighting the likelihood of increasing competitive pressures over time.”