Why Research In Motion Shares Skyrocketed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of BlackBerry maker Research In Motion have skyrocketed by as much as 14% today on analyst optimism regarding its next-generation BlackBerry 10 operating system.
So what: The U.S. market was closed on Thursday, but yesterday National Bank analyst Kris Thompson increased his price target from $12 to $15 while reiterating his outperform rating. Thompson notes that there is "positive sentiment building in the industry" ahead of BB10's launch next January. The analyst also expressed confidence in management's ability to execute.
Now what: RIM's leadership is maintaining the company's BlackBerry subscriber base, cutting costs and preserving cash, and preparing for a global rollout of BB10 devices. This is the second time within the past week that analysts have given RIM bulls some fuel, as Jefferies analyst Peter Misek recently laid out a possible case for a $43 price target if BB10 is a smashing success. Shares rallied on the comments in Canadian markets on Thursday, and today's jump is allowing it to catch up stateside.
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The article Why Research In Motion Shares Skyrocketed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.