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With a product pipeline that reportedly includes a flip phone and a touch screen device, Research In Motion Ltd. is making waves for its foray into consumer-friendly products. And the company's recent official announcement of the Bold – a new BlackBerry device with beefed up multimedia capabilities – is being hailed by some observers as a way for RIM to close the gap with Apple Inc.'s iPhone.
In other words, get ready for some pounding of the tables as analysts get giddy over RIM's potential.
Chris Umiastowski, an analyst at TD Securities, maintained his “buy” recommendation on the stock but raised his 12-month price target to $170 (U.S.) from $155 previously, based on rising expectations for 2008 and 2009 earnings per share.
“The company unveiled its impressive new 3G device (Bold) which we believe will help results in the second half of the year,” he said in a note. “With other evolutionary device launches expected later this year, we believe RIM's pipeline remains impressive.”
Peter Misek, an analyst at Canaccord Adams, reiterated his “buy” recommendation on the stock, with a price target of $200. In a note, he focused on the leak of RIM's touch screen device, code-named “Thunder.” The leaks look real, he said, as do the details on Thunder's availability: It will be available through exclusive arrangements with Verizon and Vodafone as long as minimum sales quotas are met.
“We hear that the required milestones will be significant, likely in the millions of units range in 2009,” Mr. Misek said in his note. “As a result, both Verizon and Vodafone are likely to devote massive marketing dollars to the campaign, which could lead to another blockbuster product for RIM.”
On Wednesday afternoon, RIM traded at $143.75 (Cdn.) in Toronto, up $2.75 to a new record high. Over the past 12 months, the stock has risen more than 160 per cent.
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