risparmier
Forumer storico
April 24, 2009, 11:00 am
by E Savitz Citigroup analyst Jim Suva this morning upped his rating on Research In Motion (RIMM) to Buy from Hold, while increasing his target on the stock to $100, from $65. (Note that the stock at yesterday’s close of $68.27 had topped his old target.)
Suva notes that his September 2008 downgrade had been based on concerns over deteriorating margins. But he writes that he now has increased confidence that gross margin has stabilized in the 42%-44% range. Stable margins combined with “stellar top line growth from consumer uptake” should drive a positive EPS revision cycle, he says. The $100 target is about 20x his above-consensus FY 2011 EPs estimate of $4.78.
“While we recognize RIMM shares’ outperformance since [the] April 2 earnings call, we see additional gains as RIMM offers rare growth in [the] wireless sector,” he writes. Suva adds that the stock is now on the firm’s top Picks Live list as one of their best ideas for new money.
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http://blogs.barrons.com/techtrader...arch-in-motion-citi-upgrades-sets-100-target/
by E Savitz Citigroup analyst Jim Suva this morning upped his rating on Research In Motion (RIMM) to Buy from Hold, while increasing his target on the stock to $100, from $65. (Note that the stock at yesterday’s close of $68.27 had topped his old target.)
Suva notes that his September 2008 downgrade had been based on concerns over deteriorating margins. But he writes that he now has increased confidence that gross margin has stabilized in the 42%-44% range. Stable margins combined with “stellar top line growth from consumer uptake” should drive a positive EPS revision cycle, he says. The $100 target is about 20x his above-consensus FY 2011 EPs estimate of $4.78.
“While we recognize RIMM shares’ outperformance since [the] April 2 earnings call, we see additional gains as RIMM offers rare growth in [the] wireless sector,” he writes. Suva adds that the stock is now on the firm’s top Picks Live list as one of their best ideas for new money.
...
http://blogs.barrons.com/techtrader...arch-in-motion-citi-upgrades-sets-100-target/