Medium-term potential for growth and meaningful appreciation in RIM's stock price seems limited, aside from short-term trading range opportunities. Many Street estimates are for stock price appreciation over the next 12-18 months, with some price targets in the high-teens. However, ongoing weakness in IT spending and lingering carrier uncertainty should dampen the company's growth prospects for the next year or so.

The company's cash balance provides a floor to the stock price, with balance sheet cash running at around $7.50 per share. So, this implies that the market is currently valuing RIM's fundamentals at around $6 per share. However, considering our estimates of the addressable market size for push-email devices this valuation seems a bit high, and cash value sounds about right, which makes it a $7-8 stock.

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