Analyst upgrades Research in Motion on valuation

Analyst upgrades Blackberry maker on share-price decline since disappointing 2nd-qtr earnings

• On 12:46 pm EDT, Friday October 9, 2009

LOS ANGELES (AP) -- An analyst raised his rating on Blackberry maker Research in Motion Ltd. to "Outperform" on Friday, citing overall growth prospects and a recent decline in the share price.

Robert W. Baird & Co. analyst William Power raised his rating from "Neutral," saying shares were down 20 percent since reporting its second-quarter earnings on Sept. 24. He left his $84 price target unchanged.

Power said both Apple Inc. and Research in Motion were taking share in the global smart phone market, which saw shipments rise 27 percent in the second quarter of the year.

He expects Research in Motion's earnings per share to grow 22 percent this year to $4.20 and 18 percent in the next fiscal year to $4.95.

The company's device launches ahead of the holidays, including the Storm 2, could provide a boost to results, he said.

The Waterloo, Ontario-based company disappointed investors with its third-quarter sales outlook in September and had surprised some analysts by dropping the average sale price for its smart phones.

Shares rose 52 cents to $69.18 Friday afternoon.