Shares of BlackBerry maker Research in Motion Ltd. climbed 5 percent Tuesday after a Wall Street analyst praised its forthcoming QNX operating system as a flexible and portable application platform that will span its smartphone lineup sooner than expected.
Jefferies & Co. analyst Peter Misek said his evaluation of the new operating software indicates it offers a good web browsing experience, is more bandwidth-efficient and secure than Apple's iOSS or Google's Android, is easily scalable to both low-end and high-end devices and makes it easy for developers to port Android apps to the new software, which will debut with the release of RIM's Playbook tablet early next year.
Adding that the new software rekindle interest in Blackberry from Verizon, the nation's largest wireless carrier, Misek upgraded RIM's stock to a "buy" rating, from his previous "hold," and raised his price target from $55 to $80. RIM's shares rose $2.84 or nearly 5 percent in Nasdaq trading to close at $61.83.
Misek wrote in a research note to investors that QNX could be tested on handsets in the first quarter and that international growth "should carry RIMM until the new QNX products launch."
But Misek said RIM retained a strong reputation for its security and that "enterprise share loss" will be "slower than feared." RIM will likely only lose 300,000 enterprise subscribers in 2011, he projects.