UPDATE: Hudson Square Research Upgrades Research In Motion to Buy

Hudson Square Research raises its rating on Research In Motion (NASDAQ: RIMM) from Hold to Buy and establishes a price target of $10 a share.

Hudson Square Research says, "Given 1) the essential role of mobile in the future of computing, 2) the increasing need for communications security 3) the existence of RIM's global, highly-secure mobile messaging network 4) RIM's extensive carrier relationships that extend to the billing level, 5) RIM's 78M high-margin paying subscriber base, and 6) a very digestible $1.6B enterprise value equating to roughly 2x EBITDA, we believe there exists a compelling case for a strategic sale of the company. While we believe significant risks remain should the company elect to maintain independence and / or if the company is unable to secure a buyer near-term, our strategic analysis leads us, not without trepidation, to upgrade RIM from Hold to Buy."

RIMM closed at $7.39 on Friday.