RBC Raises RIM Price Target to $150
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BlackBerry manufacturer Research In Motion (NASDAQ: RIMM) is expected to post strong share gains against rivals Motorola (NYSE: MOT) and Palm (NASDAQ: PALM), RBC Capital Markets said, raising its price target on RIM stock to $150 from $140.
Motorola's recent struggles are expected to further assist RIM's share gains, analyst Mike Abramsky said in a note to clients. He kept his "outperform" rating on RIM stock.
Motorola, which has said it faces a challenging 2008, has been losing to rivals such as Nokia (NYSE: NOK) and Samsung Electronics in the last year amid criticism of its cell phone lineup and failure to produce a strong successor to the once-lauded Razr phone.
Abramsky said he expects RIM's growth to outperform peers in 2008, given an accelerating smartphone market with share gains, international expansion and high return on investments, among others.
RIM shares were up more than $2.00 at $114.70 in trading before the bell. They closed at $112.15 Thursday on NASDAQ.