Good entry point??A weaker-than-expected outlook by Research In Motion Ltd. caused a massive sell-off of the BlackBerry-maker's shares yesterday as investors feared that rising competition and a weakened economy had finally caught up to the high-flying technology company.
But several analysts argued that, even amid the turmoil in the U.S. financial sector and the emergence of rival devices such as Apple Inc.'s popular iPhone, those investors with a stomach for risk could be witnessing a rare buying opportunity in one of the sector's hottest stocks.
Some analysts cut their recommendations on RIM stock and lowered their outlooks.
Others highlighted a buying opportunity and suggested that patient RIM shareholders could be poised to reap significant rewards once a slate of new products hits the marketplace and the cost to market and manufacture them gradually comes down.
"When RIM's full new product portfolio is shipping for full quarters in February and May, we believe investors will look back at this as a tremendous opportunity," said Tavis McCourt, an analyst at Morgan Keegan, in a note to clients.
McCourt raised his rating on RIM's shares to "outperform" from "market perform" and cut his 12-month target on the stock to $110 (U.S.) from $140 to reflect lower earnings per share estimates.
Similarly, Nick Agostino of Research Capital reiterated his "buy" recommendation while lowering his target to $140 per share from $175.
Parts of article from Saturdays Toronto Sun. It does look like a good entry point with 28% discountfrom Thursdays price. It is up to the individual to make a decision of entry point. Cheers