Canaccord Raises Research in Motion's Estimates

After finding that Research in Motion Ltd. (RIMM) device shipments and activations are between 20% to 30% ahead of schedule, Canaccord Adams analyst Peter Misek is raising his Q2 estimates for the BlackBerry maker company.

In a note to clients yesterday, Mr. Misek said he is raising his Q2 revenue forecast for RIM from $2.62-billion or  $0.89 per share to $2.67-billion or  $0.92 per share based on word that BlackBerry channel checks are higher than earlier assumed.

Mr. Misek wrote:

If RIM continues its current pace, we would not be surprised to see a positive pre-announcement for the August quarter.

He maintained a "buy" rating and $225 price target on RIM shares.

Mr. Misek discourages any impact Apple Inc.'s (AAPL) smartphone may have on RIM's BlackBerry business, in fact suggesting it might have helped.

Mr. Misek said:

It appears that Apple’s marketing dollars may actually have benefited RIM through more awareness and attention being drawn toward the smartphone segment.

Additionally, we believe that non-iPhone carriers have aggressively been promoting Blackberry to combat AT&T in the U.S.

Mr. Misek believes RIM's 3G, or next generation device, the BlackBerry Bold will be launched in limited capacity in August, followed by a major global release in mid-September. He also expects other BlackBerry releases such as the Kickstart flip-phone, Javelin and touchscreen Thunder in the fourth quarter.

 

Comments

[.crazylegs..]

ballsy call here given he has no way of knowing what iPhone demand will do to BB demand. I agree with his premise that iPhone will end up helping BB sales due to more attention to the space and the much lower price for a Pearl or Curve. Add more flexible data pricing on some carriers for BB data plans and this really makes sense. Also, how does limited supply of iPhones help RIM. Maybe RIM steals a few potential iPhone buyers if they can get it out sooner than later. (Of course ATT will bend over backwards to delay the Bold in favor of the iPhone) This will be interesting to watch.

[RIMM trader]

This is not the first time an analyst has given the tumbs up on RIMM, only to see it tumble after.

[JEWBACCA]

Desperate pumping after a major drop. Give it up, nobody believes you anymore. This is the most desperate action I have every seen.

If you think your 2 store channel BS check is so good, then you and your clients should buy more shares. The last thing we need is another Crammer wannabe and BS anal..list pump action to sucker more small investors.

Your last pump made you look like a fool...this one will get your balls hack off by the market.