Stock Picks: Research In Motion, Corning

Plus Wall Street analyst opinions on Nasdaq OMX and Qwest Communications

Research In Motion Ltd. (RIMM)

Kaufman Brothers reiterates buy

Kaufman Brothers Shaw Wu said in a Jan. 11 note that the firm hosted an investor meeting with Research In Motion at the Consumer Electronics Show (CES) in Las Vegas last week. Wu said that among key takeaways from the meeting include his belief that the BlackBerry maker has a significant advantage over other wireless companies with its push technology and better utilization of bandwidth.

"Contrary to popular belief, adding more cell towers doesn't fix the problem as it also introduces interference and cross-talk," Wu wrote in a Jan. 11 note.

Wu also believes RIM Lack of carrier exclusivity not a company concern where it has competed effectively at AT&T and in Europe. The analyst said he reiterated his buy rating on the shares as he continues to believe "the company is well positioned in the smart phone space with its vertical integration and superior push network technology." Wu sees several catalysts ahead for RIM, including a new WebKit-based browser and new BlackBerry models.

The analyst has a price target of $93 on RIM shares.

Corning Inc. (GLW)

Deutsche Bank upgrades to buy

Deutsche Bank analyst Carter Shoop upgraded shares of Corning on Jan. 11. Shoop believes Wall Street earnings estimates for the world’s biggest maker of glass for liquid-crystal displays (LCD) will trend higher following robust demand in the TV and PC markets and "tight" production capacity in 2010.

"This improved outlook, in addition to GLW’s foray into glass for thin film solar, we believe will drive its multiple higher," Shoop wrote in a note.

Shoop raised his price target on Corning shares by $5 to $24 on the assumption that Corning's glass business is worth $17 per share, while its other assets are worth $7, given the general market recovery, increased confidence in LCD demand and "a more constructive view" on its thin film solar potential.

Nasdaq OMX Group Inc. (NDAQ)

Standard & Poor's Equity Research maintains buy

Stock-exchange operator Nasdaq OMX announced on Jan. 11 capital market transactions for $1.95 billion in new debt securities that will replace its existing debt balance of $2.1 billion. S&P equity analyst Rafay Khalid said in a note that "if these transactions are successful, we believe they will allow greater flexibility in NDAQ's capital structure by lengthening the maturity dates and reducing its financial leverage."

Khalid maintained his operating earnings per share (EPS) estimates of $1.82 for 2009 and $2.03 2010, but said he will adjust his financial model once the transactions close. He kept his 12-month price target of $25.

Qwest Communications International (Q)

Raymond James downgrades to market perform from outperform

Raymond James analyst Frank Louthan on Jan. 11 lowered his rating on shares of Qwest, the local phone provider in 14 U.S. states, as he believes "the recent rise in the share price more accurately reflects its value, as it has surpassed our price target"

Louthan said in a note that Qwest shares were up 46% since March 4, 2009, compared to the other Regional Bell Operating Companies' (AT&T [T] and Verizon VZ) average of 16%, and he does not expect similar levels of outperformance over the near term.

With overall enterprise and consumer pressure, wrote Louthan, "we believe investors will remain skeptical of the low-to-no-growth telecom in general, restricting multiples, and limiting appreciation for the group overall."

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