Buy Research in Motion (RIMM) ahead of its earnings announcement on June 25 because forward guidance will go up, says AmTech.
The firm sees upside to August guidance given weak expectations, a strong ramp at Verizon, solid performance in Europe through the summer, strong front-end shipments of [new unit] Bold, and and an “incremental boost” from Sprint.
After making only minor tweaks to our forecast for the past several quarters, we are now comfortable with a significant upward revision. We are $0.03 above the street for August, but are $0.66 higher for the year (now at $4.60 pro-forma) and $1.42 higher for next year (at $6.80). We are raising our target to $205, which is 30x our new forward-year estimates.
Bottom line, AmTech still sees RIMM as one of the “best growth stories in tech”: