RIM Could Rise on Wings of BlackBerry 10: Pro
Like a phoenix from the ashes, Research In Motion could rise again.
With RIM moving toward the long-awaited launch of its newest BlackBerry, budding excitement among investors could push its lagging stock as high as $20, according to one analyst.
As Apple's Phone and Samsung's alaxy have surged in popularity, the once high flying BlackBerry has become a laggard in the digital wars. With the release of BlackBerry 10 early next year, RIM hopes to reinvigorate its fortunes.
One analyst is getting ahead of a potential rebound. Kris Thompson, an analyst at National Bank Financial, told CNBC's "Squawk on the Street" that the "negativity was really at a peak" over RIM's prospects. In late September, the stock sank to a 52-week low at $6.22.
"It's more of a go-with-the-flow call. We're following the money," said Thompson, who underscored that his call was not based on fundamentals, but on a recent flow of investment funds into RIM's battered shares.
"We don't want to bet against the dollars flowing to the stock," he said. "If the BB10 gets good reviews upon launch, it's off to the races."
Should RIM's device be embraced by the marketplace, "we wouldn't be surprised at all to see this at $25 to $30 even next year," Thompson added.
The BlackBerry was once the market's leading smartphone, epitomizing professional status before technology glitches — and the lack of "cool" cachet associated with the iPhone — caused it to fall far behind the competition.
Recently, RIM CEO Thorsten Heins described the new BlackBerry as a "mind changing" experience, adding that smartphone users would take heart in the new features and design. (Read More: New BlackBerry 10 a 'Mind-Changing' Experience: RIM CEO)
Although his call was based on the stock's recent turn higher instead of long-term value, Thompson nonetheless believes RIM can capitalize on a successful placement of its new Blackberry.
"It's a speculative investment going into the BB10 launch, and then they need to deliver and we need to have a good BB10 experience," he added.
—By CNBC.com's Javier E. David
Additional News: RIM Plots January Launch of BlackBerry 10
CNBC Data Pages:
- Dow 30 Stocks—In Real Time
- Oil, Gold, Natural Gas Prices Now
- Where's the US Dollar Today?
- Track Treasury Prices Here
Thompson owns no shares of RIM, and has no investment banking conflicts with the company.