BB Extends Massive Gains Despite Downgrade

The stock hit nine-year highs yesterday

Assistant Editor
Jan 26, 2021 at 9:44 AM
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The shares of Blackberry Ltd (NYSE:BB) are up 0.8% at $18.13 at last check, extending yesterday's gains, made after the company announced a partnership with China-based Baidu (BIDU) to create next generation autonomous driving technology. Despite this surge, RBC downgraded the stock to "underperform" from "sector perform," citing the company's valuation, fundamental outlook and low probability of patent licensing gain.

Jumping to a nine-year high of $14.28 yesterday before closing with a 28.4% gain, BB is currently climbing back towards those levels. Breaking past pressure at the $15 level for the first time since May of 2013, BB is up 188%  year-over-year ahead of today's trading. 

Coming into today, all four of the analysts in coverage carried a "hold" rating. Meanwhile, the 12-month consensus price target of $7.86 is a whopping 56.4% discount to last night's close. 

Lastly, shorts have been piling on, with short interest up 33.7% during the last two reporting periods. The 39.56 million shares sold short account for 7.2% of the stock's available float, and would take over two days to cover at Blackberry stock's average pace of trading. 

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