Canaccord Analyst: Research In Motion to Hit C$200

Research in Motion Ltd. (RIMM) handsets are still selling like hot cakes with no end in sight, according to Canaccord's latest survey which outlined bolstered confidence and satisfaction across retailers and carriers for the stalwart smartphone.

The Canaccord note says that 81% of carriers and retailers in the U.S. believe that the Blackberry is gaining market share (up from 71% from the last survey) while 56% call the Blackberry their best selling smartphone (up from 40%). Customer satisfaction jumped from 37% to 51%, a 12-month high.

Canaccord analyst Peter Misek wrote in his report how the glowing numbers of the survey influenced his guidance.

He said:

For fiscal Q1, our revenue and EPS estimate rise to $2.38-billion and $0.92¢, from $2.33-billion and $0.89.

He appeared unfazed by the recent launch of the new 3G iPhone on Monday during the World Wide Developers Conference and reiterated his "buy" rating and C$200 price target.

He concluded that:

Web page download speeds appear to be meaningfully slower (at roughly 20 seconds) versus our experience with the BlackBerry Bold ... We see no impact to RIM's stronghold in the entreprise [segment], supported by its battery life, security, bandwidth efficiency and backend IT support.

Shares of RIM were trading at C$134.18, down C$0.52 in Toronto Thursday at around 1 p.m. ET.  On the Nasdaq, the stock was down $0.80 to $130.99

Comments

[DOUGLUVS:]

THIS ANALYST ON RIMM AT CANACCORD HAS NO CREDIBILITY BASED On HIS TRACK RECORD FROM JAN 08 TO JUN 08. He was downgrading RIMM in January 08, after one of its best quarters ever in Dec 08 and was one of the factors causing the stock to tank to the low 80s in Jan/Feb 08, then he changes his mind and admits the mistake after causing a lot of damage and after RIMM was back up to $110 and now that the 3G IPhone is on the RIMM attack, he is out defending RIMM and increasing its price target. Bottomline: Disregard Peter Misek at Canaccord and pay attention to RIMM's management team and AAPL's management team for Misek's analysis is useless.

2008 Jun 13 09:58 AM

[vidya:]

I agree with dougluvs, don't listen to Peter Misek. We all know RIMM is an excellent company and I think RIMM is a good buy at this level since the quaterly result is upcoming June 26/08.

2008 Jun 13 01:40 PM

[vidya:]

Expect great earnings result from RIMM June 26th. Buy now.

2008 Jun 13 01:43 PM

[bill9300:]

Analyst seems to have neglected Valuation. He mentioned the "handsets are still selling like hot cakes with no end in sight" ?

At a price of $200/sh the company would be valued at over $110bn.

Sale and Profits for the past 12 months were, $6bn and $1.3bn earning. Currently the stock is priced to more than perfection, with an unknown future.

The numbers are like the bubbles of 2000- currently RIM has a p/e of over 60 and is valued at over 13 times annual sales.

2008 Jun 14 07:41 AM

[User 210458:]

I cannot believe the 3G iphone and Palm's Centro have no affect to RIM's Blackberry.

2008 Jun 14 11:08 PM

[Shorting Sh...:]

Both bubbles (RIMM and Oil) will burst come July.

2008 Jun 16 10:42 AM