Two Ways to Play: Credit Suisse Upgrades Research In Motion
Strengthen your portfolio in good times and bad.
Credit Suisse added Research In Motion (RIMM) to its US focus list this morning. The firm placed an Outperform rating on RIMM on the basis that it has a multi-year growth opportunity and under-appreciated volume and market share potential in the smartphone market.
Credit Suisse acknowledges that the highly rumored move of Apple (AAPL) also distributing its iPhone through Verizon (VZ) could negatively impact RIMM. But the fears are likely overdone as any move wouldn't happen until at least mid-2011.
Long-term, Credit Suisse believes RIMM could benefit from the growth of the smartphone market (+27% and +26% year-over-year in 2010/2011, respectively) and that its 21% global share is sustainable. The firm placed a 12-month $95 target rating representing a 40% upside from the current price.
From the Bull Pen: RIMM is currently trading higher in the face of down futures, a sign of demand. Those bullish can set a 2% sell stop from entry or below yesterday's low, depending on your risk profile.
From the Bear Cave: Keep an eye on Apple. Failure at its 50-DMA ($203) could mark a lower high, and its downward sloping 20-DMA could be setting up a "death cross". But even if you don't like shorting, it does help to recognize the potential weakness.
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.
A Quick Check Around the World
Asian trading closed with the Nikkei -0.46%, India -1.64%, Hang Seng -1.84%, Shanghai -0.28%, and Taiwan -0.08%.
Across the pond, we see the FTSE -0.77%, CAC -0.69%, DAX -0.49%
As of 8:10 AM EST, S&P Futures are trading -6.25 to 1090.50. Nasdaq futures are -6.25 to 1779.25.
A Look at Commodities
Over in commodities, crude oil is -0.60 to 76.38 while gold is -8.000 to 1104.00 this morning. Silver is -0.152 to 16.165 and copper -0.0550 to 2.9675.
The dollar Index is +0.1900 to 79.7400.
On the Radar
08:30 Initial Claims
08:30 Continuing Claims
08:30 Productivity Prel 5.9% cons.
08:30 Unit Labor Costs -2.1% cons.
10:00 Factory Orders 1.5% cons.
Click here for the full trading radar.
That's it from me this week. I'll be hitting the road tomorrow morning. Good luck and have a great day!
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