Citigroup analyst Jim Suva thinks that RIMM’s successful (so far) international launch of its new Bold unit will soothe angst-ridden investors who feared that the launch might be delayed until September. Now that this risk has been removed, Suva thinks it could serve as a catalyst going forward:
RIM had said Bold would be released during summer, but investor angst increased w/each passing week w/out launch, leading to fears of Sept launch (technically still “summer”). We believe actual launch removes significant sentiment overhang from RIM shares & should counter fears of rampant ad spending that has served as add’l stock overhang.
Having had the opportunity to use the Bold, Suva is impressed with its features. He also thinks that international travellers will like the product due to the fact that it can be used in Korea and Japan:
Notable spec’s: tri-band HSDPA, 802.11 a/b/g, half-VGA display (480×320), a 624Mhz processor, GPS, & ability to read/edit MS Office files. We’ve used the Bold and note the browsing is vastly superior to existing RIMM devices. We expect Bold to have strong appeal with international business travellers as device now allows for usage in Korea & Japan.
Suva reiterates his Buy/Medium Risk rating as well as his $160 price target.