While some analysts see Research in Motion (RIMM) as dead in the water, others have reevaluated the company and now feel more optimistic than ever before. Onetime RIM critic Peter Misek of Jefferies & Co has now increased his price target on shares of RIM to $10 from $5 and changed his rating on the stock from “underperform” to a “hold.” The analyst changed his opinion of the struggling company following a positive reaction from wireless providers regarding BlackBerry 10.
“Preliminary results from our quarterly handset survey indicate developed market carriers have a much more positive view of BB10 than we expected,” he said in a note to investors on Tuesday, according to Reuters. Misek now believes that BlackBerry 10 has a “20 percent to 30 percent probability of success” due to “greater carrier shelf space and marketing support.”
The analyst said that while RIM’s success is not guaranteed, if its BlackBerry 10 gamble pays off, and the operating system is licensed to other manufacturers, the stock could potentially be worth as much as $43 per share within the next 12 months. Shares of RIM reacted positively to Misek’s statements, increasing to double digits for the first time in five months before settling to a price just below $10 per share.
Misek’s beliefs aren’t shared by others, however. Pacific Crest analyst James Faucette on Monday reiterated his “underperform” rating on shares of RIM, noting that the company’s trajectory will not change regardless of the quality of BlackBerry 10.