RIM Upgraded on Strong Growth

Jul. 8.09 | About: BlackBerry Ltd. (BBRY)

Canaccord Adams analyst Peter Misek Wednesday afternoon raised his rating on Research In Motion (RIMM) to Buy from Hold, maintaining his price target on the stock at $95.

Misek says he is making the move following a recent 23% slide in the company’s stock price, as well as positive recent channel checks. He says that, according to global carrier contacts and partners, the company “delivered a healthy month of June, beating internal expectations.”

Misek contends the launch of the Palm (PALM) Pre and the Apple (NASDAQ:AAPL) iPhone 3GS “has done little to disrupt RIMM’s momentum and may have in fact benefited the company as competing carriers aggressively position BlackBerry as an alternative.”

I would note that Piper Jaffray’s T. Michael Walkley today asserted the exact opposite view - that the company had a weak June, and that the company actually is being hurt by the Pre and the iPhone 3GS.

Misek asserts that BlackBerry sales at AT&T (NYSE:T) grew double digits month over month in June despite the iPhone 3GS launch, and adds that there has been “no loss of momentum” with the BlackBerry Tour to launch July 12 with both Verizon (NYSE:VZ) and Sprint (NYSE:S). He also thinks the Storm 2 could be pulled forward to an August launch.

Misek says that with the stock now trading at 14x forward 12 months earnings, he is “more comfortable with the company’s risk/reward profile.” While he is still concerned about weak consumer spending, he contends that “RIMM has demonstrated an ability to grow in very difficult conditions due to its stronghold in the enterprise and strong carrier relationships.”

RIMM Wednesday fell 74 cents, or 1.1%, to $65.62.

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