BlackBerry shares jump on report it’s a likely acquisition target

TORONTO — BlackBerry Ltd. shares surged on the Toronto Stock Exchange after a research report identified the company as a likely target for an acquisition.

BlackBerry shares reached a high of $15.82 in Thursday morning trading — up 10.78 per cent.

They later gave up some of the gains, closing at $15.42, up 7.98 per cent.

The jump came after Citron Research published a report saying the Waterloo software company’s shares are likely to reach US$20 on the Nasdaq within 24 months.

On Thursday, the former smartphone maker’s shares on the U.S. exchange were trading at US$11.61.

The report also said the company is a likely buyout target at a sizable premium, highlighting BlackBerry’s “virtually completed” transition from hardware maker to focusing on its software business.

Citron Research, a stock commentary website led by Andrew Left, wrote that BlackBerry’s QNX software, which is installed in about 60 million vehicles, makes the company an attractive acquisition target for Qualcomm, Nvidia and NXP Semiconductors.

“When Wall Street shifts its frame of expectations toward the future and gets over their legacy business, watch out,” the report said.

BlackBerry’s shares have been on the rise recently after positive analyst commentary.

In mid-May, Macquarie Research analyst Gus Papageorgiou said in a note that the company’s shares could rise to US$45 by 2020.

His 12-month Canadian-dollar target is $16.20.