Tag: Canaccord-Adams

Analysts review RIM shares given iPhone and Nortel news



It has been a fairly intense month for BlackBerry. With the Back-to-School and holiday seasons fast approaching, RIM needs to churn out more devices and flood the market to meet the standard upswing in demand. That, coupled with Jim Balsillie’s moves to purchase the Phoenix Coyotes and RIM’s attempt at acquiring Nortel stock, there is no shortage of BlackBerry news. Given this amount of news, you can always expect an analyst to chime in with their views regarding where the stock is headed.

Phillip Huang, UBS analyst, has downgraded RIM to Neutral from Buy and cut his price target to US$88 from US$90 given the company’s price valuation. The analyst is also talking about concern regarding a new partnership between Verizon and Apple to distribute the iPhone.

“We’ve noted our expectation for Verizon Wireless to potentially announce a data-only Apple device this year,” he said in a note Monday. “Although we don’t expect a Verizon iPhone launch this/next year, we believe it could prove to be a sentiment headwind.” It is also possible the iPhone could launch on another operator in 2010, he said.

Peter Misek of Conaccord Adams, is taking a different view. He has maintained his Buy rating and US$95 target price for RIM. The potential government involvement and turnaround in the Nortel deal, has been cited as his reason for maintaining the Buy rating.

Personally, I don’t feel iPhone competition is a valid reason for downgrading stock. If you look at the numbers, BlackBerry dominates hardware sales because they cover a spectrum of users, while the iPhone only appeals to one form factor demographic and lifestyle user. With regards to the Nortel deal, I would be surprised if there is any turnaround. The government would have to declare that the sale of Nortel assets are a matter of national security, which is a tough case to make. So while there has been a lot of news this past month, the RIM ship is sailing steadily.



Canaccord Adams analyst upgrades RIM after positive sales and financials



Canaccord Adams analyst Peter Misek is upgrading RIM’s status to Buy from Hold, as recent channel checks with global carriers and partners suggesting the company had a healthy June. Although share price has lost nearly a quarter of its value since last month, the summer tends to be a slow season for the smartphone market.

That being said, BlackBerry sales with AT&T grew in the double digits month-over-month in June. With the launch of the BlackBerry Tour 9630, as well as the upcoming BlackBerry Gemini 8520, RIM is releasing more devices that has convinced Mr. Misek that RIM isn’t losing any momentum.

Even under lacklustre consumer spending conditions, Peter Misek is more comfortable with the company’s risk/reward profile now that the stock is trading at roughly 14 times Canaccord’s forward 12-month earnings projections.

RIM has demonstrated an ability to grow in very difficult conditions due to its stronghold in the enterprise and strong carrier relationships, the analyst said.

Canaccord’s price target for RIM remains at US$95 per share.



RIMM target price raised


MoneybagsRIM’s stock has hit an all-time high of $88.23 yesterday after a Canaccord Adams analyst bumped up their target price to $120 and reiterated their “Buy” rating. This came hot on the heels of a handset survey putting BlackBerrys in a favourable light. On the market, RIM hasn’t lost any steam since the 3-to-1 stock split, even in the light of iPhone hype. Right now, RIMM is sitting at $86.97, up $1.49 (1.74%).