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Here’s another one: a stock getting an upgrade related to the depth of yesterday’s sell-off.

Earlier, I highlighted upgrades of that variety for Sun (SUNW) from Goldman Sachs and BEA (BEAS) from Bear Stearns. Jonathan Hoopes, an analyst at ThinkEquity, specifically mentions the “China Effect” as providing an opportunity to buy shares of Research in Motion (RIMM), which today he raised to a Buy rating, from Accumulate.

“We believe yesterday’s China Effect shellacking of the U.S. equity market makes for a compelling buying opportunity in RIMM shares,” Hoopes wrote in a research note this morning. “From these ashes,we expect RIMM to, as a Phoenix, rise.” (Yeesh. He garbled that sentence, didn’t he? Too many commas.)

Hoopes is particularly enthusiastic about the prospects for the 8800, a new version of the consumer-oriented Pearl which uses a full-QWERTY keyboard, as well as built-in GPS, a microSD memory card slot, a trackball instead of the usual Blackberry track wheel to navigate and various other advanced features. “We expect this device, along with the already popular Pearl, to further accelerate RIM’s strong upgrade cycle,” he writes.

Hoopes has a price target on the stock of $165. “While we still believe that the competitive environment in the smartphone space is going to get hot as Hades” - and that’s pretty hot - “we think RIM has a winner on its hands.”

Research in Motion shares today are up $3.64 to $142.36. Yesterday, the stock was down $8.07.


RIMM 1-yr chart

rimm chart

Source: Research in Motion: New 8800 Model on the Move