Research in Motion "sector perform," target price raised

12/22/06 - RBC Capital Markets

NEW YORK, December 22 (newratings.com) - Analyst Mike Abramsky of RBC Capital Markets reiterates his "sector perform" rating on Research in Motion (RIMM), while revising his estimates for the company. The target price has been raised from $140 to $145.

In a research note published this morning, the analyst mentions that the company has pre-announced robust 3Q results, with subscriber additions and revenues ahead of the estimates. Although Research in Motion is likely to post impressive 4Q revenues, its EPS is expected to be adversely affected by weakening margins, the analyst adds. The EPS estimate for 2007 has been reduced from $3.41 to $3.37. The EPS estimate for 2008 has been raised from $4.90 to $5.00.