Research in Motion (NASDAQ:RIMM): RBC ups tgt to $110, estimates above consensus
- RBC Capital is out very positive on Research in Motion (NASDAQ:RIMM) upping their tgt to $110 from $83 saying they expect additional upside for RIM shares, on: a) Robust product momentum (Curve, Worldphone, Pearl 2, 8820) driving FTM results above expectations; b) Pearl 2 and affordable BlackBerry data plans seen to advance RIM into a 4x consumer market; c) Strengthening global drivers (Europe, SA, Latin AM, CDMA EV-DO); d) continued competitive advantages.
Sentiment is expected to further rise once RIM unveils Pearl 2, (launch CYQ3/Q4). A significant update, Pearl 2's stylish design, data speeds, iPhone-like browsing and compelling features may be viewed as a boost to RIM's further penetration into the 4x consumer market. RIM may sell 5M Pearl 2's FTM (vs. 2M Pearls sold since Sept/06 launch).
Global checks suggest RIM saw vigorous sales momentum Q2/Q3 from Worldphone, Curve, Pearl, 8800, 8820, others. Competition (eg iPhone) hasn't apparently yet dented RIM's momentum. Firm is increasing F08 estimates to $5.8B Revenue and $2.11 EPS ($5.6B and $1.99 prior) above street for $5.5B/ $1.99. Reiterates Top Pick.