Research In Motion Rises 11% on Future Prospects, Analyst Praise
Shares of Research In Motion (NASDAQ: RIMM) jumped 11 percent this morning after the company announced that it had updated its developer program for BlackBerry 10, the company's long-awaited OS.
The BlackBerry maker also announced that it had a limited number of test devices to provide to developers, including an all-touch model and a version with a QWERTY keyboard.
Alec Saunders, Vice President of Developer Relations and Ecosystems at RIM, said that the company has continued to refine and add on to its developer program "to ensure we are giving developers the best opportunities for success with BlackBerry 10."
RIM is also getting some investor love after Goldman Sachs upgraded the company to Buy from Neutral. "We expect RIM's results will exceed Street estimates over the next four quarters," Goldman Sachs wrote in its report. "We now assess a 30% chance of success for BB10 given positive early reviews, broad-based carrier support, attractive features and interest by carriers and consumers in broadening the field beyond Android/iOS."
Goldman Sachs also raised its Price Target from $9 to $16, which is not too surprising considering RIM's recent performance. The BlackBerry maker has been on the rise ever since it announced that it delivered its handsets to more than 50 carriers worldwide.
RIM gained nearly 40 percent over the last 30 days, raising the three-month gain to more than 60 percent. Year-to-date the stock is still down more than 28 percent. But Goldman Sachs' new Price Target is not that far from RIM's one-year high of $17.57, which was achieved on January 19. The stock tumbled almost continually over the following nine months. Every spike was met with an even greater decline.
That changed after the stock hit a one-year low of $6.31 on September 24. RIM has been growing steadily ever since, rising more than 75 percent.
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