With the computer tablet market exploding in popularity, it has generated a strong bullish sentiment toward Research In Motion (Nasdaq:RIMM) and their offering in the space: the PlayBook.
Susquehanna has responded to the optimism by saying they think there is too much bullishness in relationship to RIM, and the expected sales are already priced into the shares of the company.
They feel the estimated 10 million units to be sold is too high, and they have an estimate of 8 million units to be sold in 2011.
The major reasoning is the large number of competitors and the targeted professional market the Playbook is aimed at. That market already has a Blackberry device and may not make the change, according to Susquehanna.
Research In Motion closed Tuesday at $61.83, gaining $2.84, or 4.81 percent. Susquehanna raised their price target on them from $38 to $45, even with their "Negative" rating on the stock.
Wednesday, December 1, 2010
Research In Motion (Nasdaq:RIMM) Attracting Too Much Bullishness?
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2 comments:
The simple level of comfort consumers have with RIM, their love of the BB and the fact that the Playbook is BB's new sister (literally can be tethered wirelessly) makes this an attractive tool for the "business / corporate" market.
Having recently owned and sold an IPad - which had limited calendar functions, no file structure locally, inability natively to attach files to an email etc. Too heavy for a book reader -
Playbook will be the next Tablet to address these items - RIM's biggest challenge will be overcoming the power of the American Media who will insust that any good news about RIM be played down and trumped with some inkling from APPLE.
"That market already has a Blackberry device and may not make the change, according to Susquehanna."
The iPad is just an oversized iPod/iPhone. Yet many people own both...
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