The dramatic rise of Canadian software company BlackBerry Ltd. (TSX:BB)(NYSE:BBRY) following an extremely bullish target price and research report released by Citron Research in early June inspired many investors to jump back on the BlackBerry bandwagon at a time when many investors had simply given up on the once-industry-leading Canadian tech company.
After seeing a massive drop from over $300 per share to hovering below $10 per share for much of the last five years, the most recent 52-week rebound which showed BlackBerry’s shares rising to more than $15 per share has been a welcome surprise, boosted in part by the $20 U.S. price target (24-month) released by Citron Research just a few months ago.
Since reaching a peak of $15.82 in June, however, BlackBerry’s share price has been on a downward slide, due in part to a lack of catalysts and positive news needed to continue to drive the company’s share price higher. While BlackBerry did in fact turn a profit in the most recent quarter, the company’s earnings results of late have worried investors, with large declines in revenue and significant uncertainty remaining about just how viable the company will be long-term putting a lid on the excitement many investors previously showed.
While the company’s gross margin has been improving, and the newly founded $100-million QNX Automotive Vehicle program has promise, whether the company still has deep value at current levels remains uncertain. I expect continued volatility in BlackBerry shares over the coming months, as investors try to determine a fair value for the company, amid uncertainty.
Invest wisely, my friends.
