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.