Shares of Research In Motion will likely come under pressure in the next few weeks as two rivals launch new handsets to compete with its BlackBerry smartphone, an analyst says.
We expect RIM shares to face trickier waters over the next few weeks, Citi Investment Research analyst Jim Suva wrote in a note to clients this week.
He said Palm is launching its Pre device with Sprint on June 6 and that Apple is expected to unveil a new version of its popular iPhone next week.
Both of these events may be akin to shooting the rapids for RIM shareholders, Suva wrote, but added: rapids are inevitably followed by clear water.
He advised clients to remain buyers of the stock with a $100 target price.
Near-term events aside, we think RIM is on right side of changing handset industry dynamics, he wrote.
He said consumers are increasingly embracing smartphones and wireless carriers are eager to subsidize the handsets as well.
RIM shares were 1.3 percent higher at $83.21 on Nasdaq. In Toronto, they inched 20 Canadian cents higher to C$89.76.
(Reporting by Wojtek Dabrowski; editing by Rob Wilson)