RBC's Treiber bearish on BlackBerry
Wednesday January 27 2021 - In the News
The Globe and Mail reports in its Wednesday, Jan. 27, edition that BlackBerry is now trading at multi-year highs and above its peers. The Globe's David Leeder writes in the Eye On Equities column that RBC Dominion Securities analyst Paul Treiber says the outlook for BlackBerry has not "materially changed." Accordingly, Mr. Treiber downgraded BlackBerry to "underperform" from "sector perform." Mr. Treiber thinks a discount to peers is warranted given its low growth. He still target the shares at $7.50 (U.S.). Analysts on average target the shares at $8.10 (U.S.). Mr. Treiber says in a note: "BlackBerry is trading 26 per cent above peers (7.5 times), vs. trading at a 32-per-cent average discount over the last five years, given lower growth. Unlike peers, BlackBerry has not experienced acceleration in growth due to WFH (work from home), and therefore, a wider, not narrower, valuation discount to peers is warranted, in our view. ... While the valuation multiples of peers has expanded over the last year, it appears to reflect the acceleration in growth experienced as a result of higher demand due to COVID and the shift to WFH."
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Reddit posters push up BlackBerry's stock
Wednesday January 27 2021 - In the News
The Globe and Mail reports in its Wednesday edition that BlackBerry shares have tripled in this month, in part by hyped-up posters on Reddit's WallStreetBets forum. The Globe's Andrew Willis writes that one poster, QuackerDick, said, "My entire savings account is riding on this." Mr. Willis responded by saying the company put out a news release on Monday stating there is nothing happening to justify the price rise. QuackerDick is in good company, alongside the 1.4 million other WallStreetBets followers who are pumping up the prices of tech darlings. QuackerDick and his Reddit pals are creating wealth by dropping a lot of rocketship emojis into their posts. Mr. Willis says that he is captivated by BlackBerry- and GameStop-inspired memes. What he has not seen on Reddit is much analysis. When another WallStreetBets contributor, DairyonBigs, said on Tuesday, "We could have BlackBerry powered Autonomous EVs on our streets in the next 5 years." That is not analysis. It is a guess, loosely linked to a self-driving-vehicle software partnership with China's Baidu. Another WallStreetBets contributor, called "one-who-asks," said yesterday, "BlackBerry YOLO LETS GO I want to be free of this mortgage." You only live once.
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