Research in Motion's Q2
Research in Motion's Q2 results were solidly boring - they showed growth and met the lofty expectations of analysts. Sales, profits and subscriber growth were what you might expected from a high-flying company whose technology is beginning to move into the mainstream consumer sector, as well as new international markets in Europe and Asia. UBS Warburg was sufficiently impressed to raise its 12-month stock price target to US$95 from US$85 using a 40x P/E multiple for fiscal 2006, while Merrill Lynch boosted its target to US$87 from US$77 due to the greater than expected pace of demand driving sales and business model leverage ratcheting earnings. Surprisingly, RIM shares fell in after-hours trading yesterday - perhaps because investors expected more.
