Caris & Company Says Buy

Caris & Company initiates RIMM with a Buy and price target of $60. The firm notes that even while their estimates are well below consensus, and they still expect reduced enterprise IT budgets and weak consumer spend to sharply slow RIMM's Y/Y growth in handsets and subscriber additions in CY09, they nevertheless see BlackBerry continuing to post solid organic growth as one of the best positioned platforms in smartphones, increasing share of the cell phone pie. The firm believes that Apple's iPhone is actually the new gold standard, but with RIMM stock >70% off its highs and trading at just ~12x their CY09E EPS forecast of $3.26, combined with a solid balance sheet the firm sees ~50% upside at current valuation.