Three Noteworthy Analyst Calls on Wednesday: Research In Motion Ltd (BBRY), Kohl’s Corporation (KSS)

This upgrade served as reassurance to the investment community, as the stock broke above its $4.50 resistance. Now, the stock is facing resistance at $5.10, but if it can surpass this level then I’d look to buy at these levels.

Speculative Investors Now Getting Burned

BlackBerry has now lost more than $4 from its one-month high prior to its new BB10 release, and on Wednesday it lost another 4.5% after Pac Crest issued a bearish note and forecast to investors. The analyst, James Faucette, is saying that shipments for the new Z10 are in the 275,000-325,000 range, according to recent checks. If so this would be far below the consensus of 1 million shipments that are expected. As a result, the analyst issued a revised outlook of just 1 million-1.5 million shipments for the May quarter, and believes the Z10 is cannibalizing the Bold 9900 sales.

As an investor, I have warned others about this possibility, saying not to buy this stock on speculation, but rather wait until we see how it is perceived by consumers. This was the company’s most significant attempt to regain market share. If it’s unsuccessful then I can’t imagine profitability being a part of its future, and I believe the stock will fall significantly lower.

Conclusion

In a previous article I wrote about analysts “following the leader” and how one upgrade/downgrade can start a chain effect that dictates the trend of a stock. It is good to use this information as part of your research but you must ensure that you are assessing the stock and its valuation with your own due diligence. It is important not to make an emotional decision based on the performance of a stock, or the opinions of analysts, and if you can refrain from making such decisions in favor of your own due diligence then large gains could follow.

The article Three Noteworthy Analyst Calls on Wednesday originally appeared on Fool.com and is written by Brian Nichols.

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