What do you get when you have an undervalued, low multiple stock? BlackBerry (TSX: BB)(NYSE: BB), A little good news, and the stock market where the above average valuation index is “new normal”. A strain that is parabolic. After a 4% surge on Tuesday, BB’s share has risen about 300% from its November lows and has risen about 200% in just a few weeks.
As you may know, I’ve been increasing my BlackBerry inventory for most of 2020. Encourage investors to buy BB shares Before sell-side analysts had a “hold” rating on BlackBerry stock, they had to play a game that “catch up” with their rating and price targets.
The initial backlash of numerous recent news events (IVY project announcements, patent sales, dispute resolution) was fully understandable, but investors were backed by less meaningful news about the new momentum of BB stock. It should be noted that we are starting. Whenever you have a name that is built on that momentum, you can make far more dangerous suggestions in your hands.
I’m not personally going to dive into stocks at these heights, but I’m not ready to call the end of the spectacular run of BB stocks yet.
Not only are retail investors gaining risk appetite these days, but sell-side analysts covering BlackBerry are pressured by upgrading BB stocks after recent runs for any of the good news items these days. I think I could succumb to (I mentioned in a previous article that Project IVY is a big deal), or to keep up with the look. Analysts are confident that it is better to reevaluate the investment treatise and wait to see if there is a pullback on the card before adjusting the financial model input accordingly.
BlackBerry Stock: Do you want to queue analyst upgrades?
“Canaccord is [BlackBerry’s] New product roadmap, stable ESS numbers, QNX recovery, and more obvious cross-selling opportunities.It’s hard to discuss it, and although it may be wise to postpone and wait for further evidence [of a turnaround]I think that will leave a lot of gains on the table, as many analyst upgrades can occur after the BlackBerry stock has risen significantly, “he wrote in a previous article. “Once the BlackBerry ship is on the right track, inventory can be blamed for some serious multiple expansions and an explosive rally that could catch the attention of its southern neighbors.”
Canadian tech stocks have left analysts behind, as we predicted when BB stocks were trading in single digits many times last year, as BB stocks are currently trading at $ 23 and changing. did. I thought the evaluation index was unreasonably low. ..
When considering the possibility that subtly high multiples are new normal in this pandemic-stricken environment, how BlackBerry is a bubble with an looming catalyst and a relatively low selling price (P / S) multiple of 10.5 I don’t know, even after an unprecedented rally.
How high can BB stocks fly?
I don’t know at all.But now that retail investors can get something, I certainly don’t want to bet on that name Excited IVY, post-pandemic recovery trajectory, and new equity momentum. BlackBerry stock is a speculative buy in my book, but investors should be aware that there is a high risk of malicious retracement after the stock epic is carried out.
Friend, please be stupid.
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Stupid contributor Joey Frenet There are no positions in any of the listed stocks. The Motley Fool recommends BlackBerry and BlackBerry.
How high can BlackBerry (TSX: BB) stocks fly?
https://www.fool.ca/2021/01/27/how-much-higher-can-blackberry-tsxbb-stock-fly/ How high can BlackBerry (TSX: BB) stocks fly?