How far does a change of name take you? That is the question that people are asking about Research In Motion or now known as BlackBerry (NASDAQ: BBRY ). Shares of the company hhave jumped today by as much as 14% following an analyst upgrade. They have also traded well above the average moving over 74 million today so far.
Bernstein Research analyst Pierre Ferragu has boosted his rating on the stock from market perform to outperform, while upping his price target from $12 to $22. Ferragu has become more confident of BlackBerry 10’s success following the launch last week in the U.K., citing positive feedback on initial sales.
The analyst expects the company to generate a profit starting in the first quarter of fiscal 2014, and does not believe that declining service revenue will hurt the overall business in the long run. However, Ferragu also believes that a “sustained comeback” for the company remains unlikely, adding that the platform’s long-term prospects are “very uncertain.” Still, he believes strong initial indications are reason to buy.
Our second volume mover of the day is Sprint Nextel Corp. (S). Sprint traded almost twice its daily average today moving some 53 Million shares. A lot of the movement is probably due to the continuing efforts to gobble up Clearwire (CLWR) and a bigger market share.
Our last volume leader for today is Bank of America Corporation (BAC) moving over 100 million shares today. A group of mortgage-backed securities investors says Bank of America Corp failed to buy back more than $30 billion in loans from investors after the bank modified the mortgages to reduce borrower payments.
The allegation, made in a letter sent to a New York state judge on Friday, is the latest legal volley over a proposed $8.5 billion settlement that would help the bank, No. 2 in the United States by assets, resolve investor claims from its 2008 purchase of subprime lender Countrywide Financial.
The letter was written by attorneys for the Federal Home Loan Banks of Boston, Indianapolis and Chicago and for Triaxx funds. They are part of a group that has objected to the proposed settlement. The letter says the trustee who negotiated the pact, the Bank of New York Mellon Corp, should investigate the group’s claims.
If the settlement receives court approval, it would help Bank of America put to bed one more claim stemming from its disastrous Countrywide acquisition. If it doesn’t, the bank could face an even higher legal tab.
Disclaimer: We have no position in any stock mentioned here.