The stock of BlackBerry maker Research In Motion (RIMM) Ltd. advanced by 18% in the Toronto Market after there was a positive expectation of its Blackberry 10 doing well. The stock was up by 13.65% on the NYSE as well. Other positive news which came was target upgrade by the National bank financial to $15 per share. A gain of 18% was the highest up move by Research In Motion (RIMM) in the Canadian market in last three years. A 14% gain on the NewYork Stock Exchange followed the suit. The decision to move the target price up, was based on the high hopes of success with newly launched Blackberry 10.
A Toronto based Kris Thompson from National Bank Financial has given a “buy rating” to RIM stock saying” RIM should ship about 35.5 million BlackBerry 10 units next fiscal year, up from a previous estimate of 31.6 million”. He accredited his decision to move sales estimates upward to the positive consumer sentiment associated with the new device.
Despite the 47% increase in the value of the stock stock, stocks of Research In Motion Ltd (NASDAQ:RIMM) are still 20% lower than yearly average. The company is in dire need to win back market share from competitors like Google Inc. (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) . Thorsten Heins the CEO , is struggling hard to meet the revenue goals and improve this situation. The Chief Executive Officer flew around the world throughout last week to meet mobile carrier companies and corporate clients to promote the new device.
According to a report by Jennifer & Co. The Waterloo Ontario based RIM is expected to receive a massive response from the market on the pre-poned launch of the Smartphone device February in the coming year. The launch was previously expected to be in March next year.
This level of optimism has moved Eric Jackson, president Florida-based Ironfire Capital LLC to pick an equity stake chunk in anticipation of high return from the existing client base. Jackson, who was extremely critical and sceptical towards the company said “Most are greatly underestimating how many loyal subscribers will upgrade to BB10 in calendar 2013,” Jackson said. “All those pending upgrades are currently not factored into the stock”.
Research In Motion Ltd. (NYSE:RIMM) rose 13.65% to close at $11.6, Google Inc. (NASDAQ:GOOG) were up by 0.32% to close at $667.97 while shares of Apple Inc. (NASDAQ:AAPL) were up by 1.74% to close at $571.50.
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