'Get Overweight' on RIM This Fall, Scotia Says

Research In Motion, Ltd. (RIMM) is holding true to its name as the company moves into the final quarter of the year. RIM is on the verge of releasing two new BlackBerry smart phones, and combined with an attractive stock valuation right now along with some historical seasonal strength, analysts at Scotia Capital have made RIMM their top technology pick for the fourth quarter.

While RIMM's competition sits idle on the handset front — namely Apple — The Waterloo, Ont. company is about to release two new products heading into fall as well as an updated touchscreen model in the BlackBerry Storm, analysts say. "New devices generally lead to greater sales," wrote Scotia analyst Gus Papageorgiou in a note to clients Thursday.

RIM is trading at $81 right now on the Toronto Stock Exchange (US$73.50 in New York), making the stock a deal given the momentum the company is likely to generate. The analyst said he expects per-share earnings growth of 31% over the next year beginning in Q4, "far exceeding that of either Nokia or Apple."

Mr. Papageorgiou's recommendation: "Get overweight going into the fall" on RIM. The analyst has a one-year price target of $109, with a Sector Outperform rating. His risk ranking is Medium.

Comments

[JamesApple]

I anticipate Apple to sell 300 million+ iPhones this year. Rim should go bankrupt by year 2013.

2009 Sep 04 05:26 PM

[Advill]

Basically agree but RIMM has fail to create "passion", night lines in front of stores the D Day, rumor blogs, peoples wondering what will happen.............that is the difference with Apple.

Additionally Apple has distributed the hits of sales (IPhones) over time, not only in a quarter, that smooths financials

2009 Sep 05 09:46 AM

[msmhqueen814]

most college kids, high school kids and young people have an apple phone, but professionals such as the President, doctors, stock market analalists, marketing pros , college deans and educated people whose businesses require them to travel all over the world, use their blackberry phones to keep in touch with their families in the US. (exp..my son, a big pharma exec phones me from his blackberry from a taxi in India) SO, so i love my stock holdings in RIMM!! there is a special NEED for all types of smart phones.

2009 Sep 05 02:28 PM

[woody1]

You are totally ignoring the business world - those who do not line up all night for a phone, but purchase hundreds directly from the phone carriers. This market prefers the security of RIM's network solution.

2009 Sep 05 03:35 PM

[See through it]

Apple's real growth, +60% YOY (reported as cash sales, not GAAP) is faster than RIMMS. This accounting issue is well known. Therefore, how can Scotia have credibility, and do you really want to follow his advice considering his lack of knowledge? In any event, RIMM will do just fine due to booming smart phone sales, but AAPL will run laps around them when it comes to ROI.

2009 Sep 05 08:04 PM

[msmhqueen814]

Apple's sales are much greater due to the cheaper price and advertising expertice but RIMM is light years ahead in technolegy! some people do not want any phone smarter than them! (apple's customers) all in all, both phones will remain very sucessful and it is only a matter of who wants which!! Can not lose on either.

2009 Sep 05 09:59 PM

[grey road]

why do you make such ridiculous statements. There is just as good a chance that Apple would be bankrupt in 2013 as RIM. And we both no there is a better chance that both will still be in existance...


On Sep 04 05:26 PM JamesApple wrote:

> I anticipate Apple to sell 300 million+ iPhones this year. Rim should
> go bankrupt by year 2013.

2009 Sep 06 09:34 AM

[JamesApple]

Rim is not a good company. Rim has neither the corporate strengths nor the products and services to see it thru the year 2013.

Apple products and services have established a well rounded basis to launch itself into a multitrillion dollar company.

The future is hard to predict, and I am predicting the future.

2009 Sep 07 01:06 AM

[Trinvester]

iPhones are for kids, a Blackberry is for their parents.

2009 Sep 07 08:43 AM

[grey road]

ok, whatever you say... I think youve eaten some rotten apples.


On Sep 07 01:06 AM JamesApple wrote:

> Rim is not a good company. Rim has neither the corporate strengths
> nor the products and services to see it thru the year 2013.
>
> Apple products and services have established a well rounded basis
> to launch itself into a multitrillion dollar company.
>
> The future is hard to predict, and I am predicting the future.

2009 Sep 07 09:52 AM

[Wireless Wiz]

Classic comment!


On Sep 04 05:26 PM JamesApple wrote:

> I anticipate Apple to sell 300 million+ iPhones this year. Rim should
> go bankrupt by year 2013.

2009 Sep 08 12:18 PM

[grey road]

what is classic about it? It is basically a ridiculous statement with no reasonable basis in fact at this time anyway.


On Sep 08 12:18 PM Wireless Wiz wrote:

> Classic comment!

2009 Sep 10 07:27 AM

[Wireless Wiz]

It IS classic. 300+ million iPhones is impossible and he knows it. This guy is an antagonist and the things he writes are so absurd on the face it's not worth engaging in conversation. When I say "classic" I mean so stupid it's preposterous.


On Sep 10 07:27 AM grey road wrote:

> what is classic about it? It is basically a ridiculous statement
> with no reasonable basis in fact at this time anyway.

2009 Sep 15 10:26 AM