Yesterday may have been Halloween, but some think there's nothing scary about Research In Motion Ltd.'s (RIMM) shares. Canaccord Adams analyst Peter Misek remains bullish on the stock, raising his target price to US$160 and maintaining his "buy" recommendation.
In a note, Mr. Misek set his fiscal 2010 targets at US$11.8-billion for sales and $5.49 for earnings per share [EPS], and expects EPS to grow by about 100% in fiscal 2008, 70% in 2009 and almost 50% in 2010.
"We give more weight to a company's long term financial prospects in cases where we see a defensible competitive advantage," said Mr. Misek. "RIM qualifies in our view because of the lead the company has been able to extend with its technology, carrier relationships and market presence."
However, The Motley Fool's Phillip Durell looks at RIM as a Halloween trick rather than a treat.
Mr. Durell compares the Waterloo, Ont.-based company to the hype that Palm Inc. (PALM), the previous darling of the PDA world, once had, but stops short of saying RIM will suffer the same fate.
"My beef is the positively spooky valuation and the expectations of perfection built into today's share price -- especially if you consider this (as I do) to be a commodity market with new innovations and competitors coming online every year," Mr. Durell wrote.
