Canadian handset maker, Research In Motion Ltd(NASDAQ:BBRY) is proving all its detractors wrong – so far as its initial sales figures indicate.
After the rash of downgrades and criticisms that the company received after it launched its new operating system along with two new smartphones, there is a distinct reversal in sentiments now.
Peter Misek of Jefferies & Co maintained his Buy rating on the stock with a target price of $19.50, after store checks confirmed that the company’s Z10 handsets were seeing brisk demand.
Wells Fargo also rated it at Outperform from Market perform before with a price range between $19 and $20 a share.
Initial indications are that in the two big markets here the smartphones are available for sale – the United Kingdom and Canada – the company is seeing enthusiastic response and is in fact the best debut that its phones have got so far.
Misek said that he had contacted 50 stores so far and the feedback was encouraging. He reported that half of the stores in Canada were sold out, especially in Toronto and Vancouver.
Shares in Blackberry closed up 5.7 percent at $16.98 and rose 1.4 percent in extended trading.
Technology outsourcer Cognizant Technology Solutions Corp(NASDAQ:CTSH) rose nearly 3 percent on Thursday after its quarterly results beat market estimates.
The company also issued an upbeat profit outlook for the current year.
In a chat with Barrons, Cognizant president Gordon Coburn said that the company has decided not to pay out dividends at the moment and returns to shareholders will be in the form of higher revenue growth and stable margins.
Last year the company spent more than $480 million in share buybacks. It has an existing $1 billion repurchase plan.
In the current year the company plans to spend about $400 million in capital investments.
The 17 percent revenue growth forecast for this year is based on the company’s focus on social, mobile, analytics and cloud.