Research in Motion Is A Solid Buy (RIMM)
Equity Research firm Broadpoint Gleacher has given Research in Motion Ltd. (NASDAQ: RIMM) a “BUY” rating. Research in Motion (RIMM) expects to earn $1.31-$1.38 per share in its May quarter.
Don Morrison, Chief Operating Officer of the company has said that there is plenty of runway in smartphones with over 1 billion feature phones still shipping. RIMM currently commands 45% share in the U.S. market and is confident about retaining it.
Research in Motion is expected to earn $17.664 billion in CY2010. The corresponding figures for CY2011 stands at $20.143 billion. The company is expected to record EPS of $5.30 and $5.95 for CY2010 and CY2011 respectively. The company has been given a price target of $90. The stock is currently trading at 13X multiple of expected EPS of $5.45 for FY2011.
