By" George Kesarios
BlackBerry Short Seller Squeeze Watch
Mar 20 2013, 13:12 | about: BBRY
One by one the big firms are coming over to the BlackBerry (BBRY) camp, after having realized that the company is not going out of business after all. The latest upgrade comes from Morgan Stanley, that upgraded BlackBerry from a sell to a buy rating with a price target of $22 per share from a previous $10 per share price target.
What is interesting are the catalysts mentioned by Morgan Stanley:
The move is based on adoption of BB10 expanding gross margins and increasing average selling prices. This even assumes a lower service attachment rate and low assumptions on sales numbers.
So after Goldman Sachs, who upgraded BlackBerry with a price target of $19 per share, BlackBerry gets another very prestigious upgrade, this time from Morgan Stanley, but with a higher price target.
I am not sure what short sellers are thinking, but having two of the biggest Wall Street firms against you are not very good odds.
Another short term catalyst (AKA reason to squeeze the shorts) for the stock is the fact that on March 28, 2013 (in a very few days from now) BlackBerry will present its Q1 2013 earning results. This is important for we will finally get a sense of the company's quarterly sales and just how good the Z10 is doing on a global basis.
Because it's one thing to speculate as to how the company might be doing and how sales are progressing, and its another to actually know where we stand because we will finally have official data from the company. It will also be good to hear the company's comments and of course their forward looking guidance.
And CEO Thorsten Heins has some good news ahead of the report. In an interview just