Research In Motion just received another upgrade from another prominent Wall Street darling. Goldman Sachs has given the Waterloo company a rare upgrade, giving its investors more optimism for buying RIM stock. Interestingly, lots of analysts are beginning to feel more confident that the Canadian based smartphone maker will get through its tough times, with its soon to be released BlackBerry 10 devices.
Goldman Sachs has slapped a price target of $16 per share. The investor group also expects that in the coming fiscal year, RIM will finally return to profitability. I know, that sounds unbelievable. Goldman analyst Simona Jankowski said in a note to clients, “We are upgrading Research in Motion to Buy from Neutral, as we see a positive risk/reward heading into its BlackBerry 10 launch on Jan. 30.” Jankowski continued saying “For the first time in 3 years, we think out-year Street estimates are too low as they don’t capture” potential results from the forthcoming device.”
Of course, the market is reacting positively to this upgrade, as RIM’s stock price today hit a high of $12.30 per share. The fact that so many analyst are joining the wave that Research In Motion will return to profitability in the next fiscal year is extremely speculative. On the other hand, this would be great news for consumers if RIM were to pull through. That said, we won’t see how people will react to devices carrying BlackBerry 10 until January 30, 2013, which is a long time from now.
How do you feel about all these upgrades from investment companies? Do you think RIM will make a comeback?