RIM Shares Back Above $50 Level
Research in Motion (NASDAQ:RIMM) shares have quitely crept back above $50, closing Friday at $50.21 and added another 12 cents after-hours. Since Sept 2nd RIM shares have gained back 13.7%.
WallStNation.com Sponsors - Become one Today
RIM shares are still almost 1/3 down since April, but the stock is finally seeing some positive movement these past few weeks and it hasn't gone unnoticed. Over the past 12 months Research In Motion Ltd (RIMM) shares have traded between $42.53 and its 52-week high of $76.95. Research In Motion shares still trading cheap with a P/E Ratio of 9.6 and EPS of 5.2.
This past week Raymond James reiterated its Outperform rating on Research in Motion (RIMM); it has a $70.00 price target on the stock, implying at 39% return in the next 12 months.
|CO.||Current Price||Target Price||% Change|
|RIMM||$ 50.21||$ 70.00||39.4%|
Raymond James analysts cited RIMM's release of its QNX-OS based Playbook tablet at the Blackberry Developer Conference along with new developer tools including the WebWorks SDK, BBM social platform and the Blackberry Advertising Services.
The analysts believe that the tablet shows RIMM is starting to compete effectively with hardware specs and also added that the QNX-OS should be positively reviewed.
As for valuation, the analysts remarked, “RIMM currently trades at 5.0x C2011E EBITDA and at 8.4x C2011E EPS compared to Apple at 8.9x EBITDA and 15.7x EPS and its peer group which trades at 7.1x EBITDA and 13.3x EPS.”