Research in Motion's (RIM-T 15.71 1.03 7.02%) shares are rising after Jefferies & Co. analyst Peter Misek upgraded the company to "buy" from "hold" and hiked its price target ahead of the much anticipated BlackBerry 10 launch on January 30.
Misek raised RIM's price target by more than $6 to $19.50.
He says the upgrade reflects expectations RIM will enable BlackBerry's corporate email on iPhones and Android devices, which currently dominate the smartphone market.
RIM could "create a successful software business on top of Android/iOS," Misek writes in a research note.
The analyst also notes RIM could see strong earnings in May and August due to the BB10's $600-price tag and volume commitments from mobile phone carriers for the first two quarters after the launch.
Misek says RIM could have a strong uptake of the new device in developing markets where he estimates 20 to 30 million of its existing user base can afford the BB10.
And he says although the company has lost momentum and market share in other markets, "the core installed base has been starved for a legitimate upgrade opportunity."
Misek says RIM may not have lost as many subscriber as some have feared. Although the company announced in December it would no longer charge subscriber fees with the BB10, Misek says "RIM's subscriber base is skewed toward emerging markets with extended replacement rates which should push out the impact of RIM's business model shift."
RIM has also increased the number of BB10s it's manufacturing to the 1 to 2-million range per month from the 500,000 it made in December, according to Misek.
RIM's share price also got a bump on Wednesday when the company announced credit card company VISA approved its mobile-payment solution.
The company's shares have doubled from their low point of $6.10 in September to a close of $14.68 Thursday.