After bidding up Research In Motion Ltd.'s shares soon after the BlackBerry maker revealed its new device on Tuesday morning, investors took a U-turn later in the day, sending RIM shares lower. It is unclear at this point whether people think the BlackBerry Torch (as the new device is called) is a disappointment or whether this is one of those buy-the-rumour, sell-the-fact sort of moves.
So far, though, analysts are sticking to their earlier recommendations. According to Bloomberg, five analysts have weighed in since the launch - and no one has changed their view on the stock.
Bank of Montreal, Stifel Nicolaus, Dundee Securities and Caris & Co. maintained "buy" recommendations, with target prices ranging between $75 (U.S.) and $92. (RIM shares trade in New York, as well as Toronto.) UBS maintained a "neutral" recommendation, with a target of $65.
The average target price is $81, implying a 45 per cent gain over the next 12 months. In other words, analysts are bullish on RIM - but the new device apparently hasn't made them more bullish. Maybe, in the opinion of some investors, that's a bearish sign.
David Berman