4/6/2008 - Analysts Expect High-End of Guidance or Better from RIM

Analysts are expecting good things from Research In Motion Ltd. (RIMM)when it reports fourth quarter results after market close today.

Canaccord Adams�channel checks with carriers in both North America and Europe suggest the BlackBerry-maker will be on the high end or above guidance and its first quarter is tracking ahead of consensus.

“We believe that carriers are becoming considerably more enthusiastic about RIM’s slate of new product launches in 2008,�analyst Peter Misek told clients in a note. He also said the chatter is growing around a possible clamshell device, a touch screen BlackBerry and a 3G handset.

Canaccord has raised its 2009 and 2010 revenue and earnings per share estimates for RIM, while maintaining a “buy�recommendation and $150 price target.

Mr. Misek believes the premium RIM is trading at compared to its peers is warranted “given the company’s dominance in a lucrative enterprise market and its growth prospects.�

He sees no credible threats to RIM’s dominance in this segment, saying Nokia (NOK) is “still nowhere�in enterprise and Apple’s (APPL) iPhone has “failed to make a dent�despite recent enterprise-related announcements.

Jeffrey Fan at UBS also expects RIM’s results to come in at least at the high end of its guidance range. The analyst noted that the company’s outlook for the first quarter of fiscal 2009 is key, with strong initial order volumes for the CDMA Curve, international strength and further promotional activity expected to push guidance above his current estimate and the consensus.

He has a “buy�rating and $155 price target on RIM shares.