Tuesday, January 5, 2010

Research In Motion Ltd. International Opportunity Provides Next Leg of Growth

January 4, 2010

Research In Motion Ltd.
International Opportunity
Provides Next Leg of Growth


We are initiating coverage of RIMM with an
Overweight rating and a $90 price target as we
believe the unit volume opportunity internationally is
great enough to materially offset inevitable share loss in
North America from iPhone and Android. With the entire
smartphone market growing 37% from ’09 thru ’13 and
the steadily increasing cashflow from the 80%+ gross
margin Services business providing profitability support,
we calculate revenue growth of 21% thru FY13 for a
stock trading at 13x our CY10 EPS estimate of $5.12,
the same multiple as Nokia.

We expect RIM to take smartphone share from
Nokia in Europe, while in China – where the only phone
RIM currently sells is the 4-year old 8700 – recent
agreements with China Mobile and China Telecom
could generate up to 3-4M additional units/qtr by 2013
leading to 2½ points of smartphone share gain outside
of North America from China alone. (Morgan Stanley)

continue reading the complete report below
Morgan Stanley Report Link Below
http://www.scribd.com/doc/24796034/RIMM-The-Heavy-Lifting-is-Done-Now-for-the-Hard-Part?secret_password=1s22jwiydqbotrcwb0u7

Morningstar Research Link Below
http://www.scribd.com/doc/24794101?secret_password=27pw7sf84ymz06p9tjuk

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