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Bear Stearns Ups Research In Motion to 'Outperform'

Andrew Neff sees strong momentum for Blackberry devices, even as competition rises

Bear Stearns Ups Research In Motion to 'Outperform'

Andrew Neff sees strong momentum for Blackberry devices, even as competition rises

Bear Stearns upgraded Research In Motion (RIMM ) to outperform.

RIMM posted 20 cents third-quarter GAAP earnings per share, and sees 30 cents to 40 cents in the fourth quarter. Analyst Andrew Neff says he upgraded from peer perform on strong momentum; the proliferation of BlackBerry devices from geographic and product expansion; a rise in information-technology spending; a less competitive impact leading to significant earnings leverage; and a more compelling valuation. Neff says BlackBerry demand is now at an inflection point given new markets. Its installed base is exceeding 1 million in the fourth quarter, while competitive offerings have had only a minimal impact. He notes additional growth opportunities from WiFi products and new markets such as China. Neff raised the 24 cents fourth-quarter earnings per share estimate to 55 cents, and upped the $1.10 fiscal 2005 (Feb.) estimate to $2.55.