Analysts Say Research In Motion Will Perform Better Than Originally Expected

imageTwo analysts have raised their expectations for BlackBerry-maker Research In Motion, saying that they now expect the company’s first quarter performance to be better than originally expected. RIM (NSDQ: RIMM) will report its financial results for the three-month period ended in May on Thursday next week.

Today, Barron’s reports that J.P. Morgan analyst Ehud Gelbaum boosted his earnings per share estimate for the company’s full year 2010 to $4.06 from $3.71. For first quarter, he raised his estimate eight cents from 88 cents to 96 cents. He also increased his price target for the company’s stock to $88, up from $74. The stock closed yesterday at $83.45. He raised his forecast because he expects margins to improve since the phones hitting the market are made from less expensive components, unlike the pricey touchscreen Storm. Gelbaum also raised his forecast on units shipped for the May quarter to 7.9 million phone from 7.7 million.

Yesterday, Goldman Sachs also raised estimates, reports Barron’s in a separate story. Analyst Simona Jankowski raised her price target on the company’s stock to $96 from $85. She also adjusted her earnings per share estimates, saying that for the fiscal year 2010, she now expects $5.34 a share, up from $5.10. She writes: “Our retail checks and conversations with the supply chain throughout the quarter suggest continued robust sell-through of RIMM devices, helped by currency tailwinds.”

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