What Do Analyst Ratings Say About BlackBerry (BBRY) Potential?
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BlackBerry (Nasdaq: BBRY) is an oddity, at least, from the perspective of Wall Street analysts.
Market data points to the stock trading with a premium of about 20 percent above consensus price target estimates. That is the richest premium when compared to the 239 stocks trading in the S&P/TSX composite index, Bloomberg-compiled data shows.
What's more, following Goldman Sachs' downgrade earlier in the week, only about 15 percent of analysts covering the stock rate it at Buy or better.
Canada's Globe & Mail (DGM) points out Wednesday that high analyst ratings might not tell the whole picture. DGM points out that one analyst from Switzerland-based 1741 Asset Management studied the MSCI World Index over the last 10 years and found that stocks with the best ratings generally underperformed the broader index.
Those with bad ratings were found to underperform as well. However, stocks with mostly middle-of-the-road ratings seemed to do better over the time frame.
DGM also notes that analyst revisions, becuase they generally are a rarer occurrence, have more influence on the stock than actual opinion. So far in 2013, there have been 16 revisions: six were upgrades and 10 were downgrades. For more color on the changes, click here to head over to Streetinsider's Ratings Insider page for BlackBerry.
Since the start of 2013, BlackBerry is up about 22 percent. Into the open Wednesday, shares are indicated higher.
Market data points to the stock trading with a premium of about 20 percent above consensus price target estimates. That is the richest premium when compared to the 239 stocks trading in the S&P/TSX composite index, Bloomberg-compiled data shows.
What's more, following Goldman Sachs' downgrade earlier in the week, only about 15 percent of analysts covering the stock rate it at Buy or better.
Canada's Globe & Mail (DGM) points out Wednesday that high analyst ratings might not tell the whole picture. DGM points out that one analyst from Switzerland-based 1741 Asset Management studied the MSCI World Index over the last 10 years and found that stocks with the best ratings generally underperformed the broader index.
Those with bad ratings were found to underperform as well. However, stocks with mostly middle-of-the-road ratings seemed to do better over the time frame.
DGM also notes that analyst revisions, becuase they generally are a rarer occurrence, have more influence on the stock than actual opinion. So far in 2013, there have been 16 revisions: six were upgrades and 10 were downgrades. For more color on the changes, click here to head over to Streetinsider's Ratings Insider page for BlackBerry.
Since the start of 2013, BlackBerry is up about 22 percent. Into the open Wednesday, shares are indicated higher.
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