RIM shares rise 6 percent as Goldman jumps on BB10 bandwagon

Thu Nov 29, 2012 12:32pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Euan Rocha

TORONTO (Reuters) - A wave of optimism surrounding the launch of Research In Motion's re-engineered BlackBerry line picked up momentum on Thursday with Goldman Sachs raising its rating on the smartphone maker and setting off a surge in its share price.

The brokerage firm joined a growing chorus of analysts who have warmed to the prospects of a successful introduction of the new BlackBerry 10 devices, which RIM hopes will let it claw back market share lost to Apple Inc's iPhone and smartphones powered by Google's Android platform. The BB10 devices are expected to hit store shelves early next year.

The shift in sentiment has been swift. A few weeks ago, most analysts believed RIM had squandered any chance it had to become a serious competitor because of repeated delays in the launch of the new smartphone.

But with a launch date now set for January 30 and some positive feedback about the devices from telecom carriers and developers, some analysts now think RIM might be able turn around its fortunes.

In a note to clients, Goldman analyst Simona Jankowski said preliminary specifications that have emerged on the BB10 devices appear impressive.

"With these devices RIM appears to finally be aiming for the leading edge hardware performance that was missing from its prior generations," Jankowski Said.

GOLDMAN UPGRADE

Jankowski said she believes more applications will be available for BB10 than had been expected because BlackBerry users typically download a relatively high number of paid apps, which is an enticement to app developers.   Continued...

 
A logo of the Blackberry maker's Research in Motion is seen on a building at the RIM Technology Park in Waterloo April 18, 2012. Picture taken April 18, 2012. REUTERS/Mark Blinch