Globe says investors may have given up on BlackBerry
2022-02-01 09:08 ET - In the News
The Globe and Mail reports in its Tuesday edition that BlackBerry has not enticed investors for years, and its deal to sell its patents for $600-million is not a good enough reason to pay attention now (all figures U.S.). The Globe's David Berman writes that BlackBerry has struggled to gain attention in the stock market over the past decade, other than a fleeting interest last year as a so-called meme stock. On Monday, the stock closed at $8.23 in New York, up 4.4 per cent. Serious investors may be slow to give the stock another look, and it is hard to blame them. The share price has sagged more than 40 per cent over the past 10 years, and it is down 94 per cent since mid-2008, about a year after the introduction of Apple's iPhone. Even the notoriously bullish analyst community has been mostly voicing opinions perhaps best summarized as: Why bother? Among the 11 analysts covering the stock, just one recommends it as a buy. Monday's patent sale announcement, which had been widely expected, did not lift the mood. Paul Steep, an analyst at Scotia Capital, lowered his target price -- or the price at which he expects the shares to trade within 12 months -- to $6.50 from $7.50 previously, to reflect the lost business line.
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