Analyst Says There's a 30% Chance RIM Shares Will Hit $43 Next Year

Posted by Knowlton Thomas

While the haunting words of James Faucette still linger in our minds—"BlackBerry 10 is likely to be dead on arrival"—an even more salient analyst has come forth to sing a different tune.

Jefferies & Co analyst Peter Misek helped Research In Motion shares crack double digits for the first time in five months after he upgraded the stock from "underperform" to "hold," suggesting there is an up to 30% chance that RIM will succeed.

In the case of such success, Peter sees shares skyrocketing up to $43 next year. That would be a growth rate of more than 300%, though shares would still be down significantly from the Canadian company's high of more than $140 in 2008.

Why does Peter think RIM can make a comeback now? Carriers' reception to BB10, mostly. The analyst argues that carriers do indeed want a third smartphone platform to succeed in the market, and that BB10 has a legitimate chance of being that platform.

SEE ALSO: BlackBerry 10 Will Have the Best Mobile Browser Ever

“We have been surprised by the strongly positive initial feedback on BB10 from carriers,” Peter said. “We expected a more muted response, given BB10 is two years late and RIM’s market share has plunged from 20% to 5%."

"Our theory," he concluded, "is that carriers see BB10 as one of their last chances to avoid being locked into a long-term smartphone OS duopoly.”

Photo: Eric Risberg, Associated Press

Company:
BlackBerry
Website:
http://www.blackberry.com
Location:
Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999. Since then, BlackBerry products and services have continued to change the way millions of people around the world stay connected. With the launch of BlackBerry 10, we have re-designed, re-engineered and re-invented BlackBerry. Not only did we introduce a... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more



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