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BlackBerry Stock Increases by 15% on First Trading Day

By - Source: Reuters | B 9 comments

BlackBerry 10 launch propels share prices.

Although share prices declined after BlackBerry 10's launch on January 30, the company's first trading day under the brand 'BlackBerry' has seen its stock prices surge by 15 percent.

Previously known as Research In Motion, its share prices increased partly due to Bernstein Research upgrading the company's rating to "Outperform", which is the first time in three years the firm has been given such a rating.

Bernstein increased its price target on BlackBerry stock from $12 to $22. Comparatively, the stock for Research In Motion traded as high as $140 in 2008, but dropped to under $7 this fall due to the dominance of fellow ecosystems including Android and iOS. The shares closed on Monday to a jump of $1.96 to $14.98, representing a 15.02 percent gain; almost 83 million shares were traded.

"We upgrade BlackBerry to outperform today as we believe BB 10 is set for a strong launch," said Bernstein analyst, Pierre Ferragu. "Even if the long-term prospects for the platform are very uncertain, we believe all is in place for BlackBerry 10 to enjoy a great debut. The strength of this launch is overlooked by investors, creating strong opportunity to buy BlackBerry. We believe BlackBerry should trade in the $20-$25 range once a decent launch for Blackberry 10 and a stabilized trajectory for fiscal year 2014 are priced in."

GMP Securities analyst Deepak Kaushal, however, changed his rating from "Reduce" to "Hold" for BlackBerry. He believes BlackBerry 10 doesn't offer enough to win back its lost consumer base from competing mobile platforms.

 

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  • 11 Hide
    redeemer , February 5, 2013 8:35 PM
    It does not need to beat other OS's its just need to sell and be successful
Other Comments
  • 11 Hide
    redeemer , February 5, 2013 8:35 PM
    It does not need to beat other OS's its just need to sell and be successful
  • 6 Hide
    bombebomb , February 5, 2013 8:59 PM
    The only place to go now is up! lol
  • 0 Hide
    xpeh , February 5, 2013 9:45 PM
    Take that, Analysts!
  • 2 Hide
    shikamaru31789 , February 5, 2013 10:08 PM
    I hope they make a full recovery. Competition is good for the market.
  • 0 Hide
    TheBigTroll , February 5, 2013 10:17 PM
    from what i heard in the news today in canada, their prices only went up by a dollar.
  • 0 Hide
    meltbox360 , February 5, 2013 11:59 PM
    TheBigTrollfrom what i heard in the news today in canada, their prices only went up by a dollar.


    And a dollar is quite significant considering their price. The percentage increase makes people who own a thousand shares a lot more than a dollar. Think $1k per thousand shares.
  • 1 Hide
    fuzzion , February 6, 2013 12:56 AM
    Time to unload my put calls.
  • -1 Hide
    fuzzion , February 6, 2013 12:56 AM
    Time to unload my put calls
  • 0 Hide
    cbfelterbush , February 6, 2013 8:03 PM
    Can't help but think that in 3 years it would be great to see, and frankly given Apples track record of suck it could be possible to see the top three as, Android, BBX, and Windows.

    I think Apple will end up back where they started, in the nobody gives a shit category. -Cole