Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) has had a nice run lately. Share prices of the Canadian based BlackBerry maker, are up over 66% in the past three months alone. Many analysts who were bearish, are now seeing hope in the upcoming BlackBerry 10. New details emerged today regarding the new operating system.
Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) announced the BlackBerry 10 ready program to motivate and support its Enterprise customers to upgrade to BlackBerry Enterprise Service 10 (BES10), which is necessary to support the new BBX devices expected to launch on January 30th, 2013. The program includes a free BBX smartphone, a full training program, and a free ‘trade-up” of their existing BES license to BES10, through December 31, 2013.
Evercore Partners Inc. (NYSE:EVR) analysts are out with a new report today on Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM). They note that the upgrade program supports their call that BBX devices require an IT upgrade to BES10.
On 11/28, in a research note titled,“Not so fast on BBX” they wrote about the need for enterprises to upgrade to BES10 to support the BBX devices as a potential ramp, limiting RIMM’s new product launch.
Removes a roadblock for those wanting to upgrade.
Many investors are encouraged with an “all out” marketing campaign, with the right incentives to motivate enterprises to upgrade. Our take is that this will remove a roadblock for those already planning to upgrade, but likely won’t push too many who prefer to wait, or who have already deployed alternative BYOD/ Mobile Device Management Solutions (“MDM”) to support iOS and Android.
Evercore notes that CTXS’s purchase yesterday of Zenprise a private MDM provider as evidence of increased industry efforts in the BYOD software arena.
Price Target is Unchange by Analysts
While RIMM’s stock may rally into optimism for BBX, Evercore Partners Inc. (NYSE:EVR) maintains their cautious thesis. Their $8 target (sum of the parts) is based on an uphill battle for third behind iOS and Android and the potential for RIMM to monetize its patents. Risks include execution issues, uphill battle for the 3rd ecosystem and potential pent-up demand for BB10.
Potential catalyst: Look for more details and a progress report on the Blackberry 10 ready program.