Research In Motion Limited (USA) (NASDAQ:RIMM) (TSE:RIM) may be the comeback kid for some investors, but how long will this rally last? Many analysts, like those at RBC Capital Markets, have become bullish on the stock lately, but not all of them have. Some say they don’t buy the hype, while others, like those at RBC Capital Markets, are simply proceeding more cautiously, saying it’s just too early to tell what the stock will do.
A report in The Wall Street Journal indicates that analysts at Citigroup Inc. (NYSE:C) “don’t buy the hype.” The stock is up almost 5 percent so far today, and it has gained about $5 per share in value in about two weeks. For a stock that’s currently trading at less than $20 per share, $5 per share is quite a bit. This year the stock has risen more than 184 percent since the end of September.
Stone House Capital Partners returned 4.1% for September, bringing its year-to-date return to 72% net. The S&P 500 is up 14.3% for the first nine months of the year. Q3 2021 hedge fund letters, conferences and more Stone House follows a value-based, long-long term and concentrated investment approach focusing on companies rather than the market Read More
So what has investors so excited about shares of Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM)? It’s really all about the BlackBerry 10 launch. The unveiling is set for Jan. 30.
Citigroup’s Jim Suva has reiterated his Sell rating and $6 price target on the stock. He said so far the company hasn’t really announced anything unexpected. He also said that investors likely are not taking into account the rapidly rising amount of competition in the smartphone market. Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM)’s BlackBerry 10 is up against cheaper Android phones made by Chinese manufacturers.
Meanwhile, RBC Capital Markets analysts raised their price target on shares of Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) from $11 per share to $19 per share. They say that they see plenty of upside to the stock, although they also believe that it’s “far too early to call a success.”