BlackBerry (BBRY) Build Plans Raised, Returns Normal, Phablet on the Way - Jefferies' Misek

April 16, 2013 7:29 AM EDT
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Price: $7.16 -1.51%

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    7 Buy, 39 Hold, 16 Sell

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    Up: 35 | Down: 31 | New: 11
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Jefferies' Peter Misek reiterated his Buy rating and $22 price target on BlackBerry (NASDAQ: BBRY) Tuesday after Asia checks showed that build plans have been increased and U.S. checks showed that return rates are not abnormally high.

"The build plans have steadily been increased since February," Misek notes. "Our Asia checks indicate that the builds have recently increased from 2M/month to 2M+. This lends us confidence to our above-consensus May Q (Jef $4.1B/$0.50 vs. St $3.4B/$0.03) and Aug Q (Jef $3.9B/$0.37 vs. St $3.3B/$0.11)."

Misek also said checks confirm that 2-3 additional BB10 models are likely to launch before year end: A mid-range (i.e., ~$400) keyboard, a mid-range touch, and a 5" Z10-like device (slated for year end launch). He notes these models are not in their estimates at this time.

On U.S. return rates, Misek said anecdotal evidence he has collected suggests return rates are normal. "Our anecdotal U.S. discussions contradict recent allegations that Z10 returns are exceeding sales," he comments. "Overall, our checks indicate typical return rates. Of the few phones that were returned, the only main commonality we found is that buyers thought the Z10 had a keyboard. As it does not, they returned it and will buy the Q10 instead."

Misek continues to see large upside to May and Aug quarterly Street estimates and believes the company's MDM opportunity is underappreciated.

For an analyst ratings summary and ratings history on BlackBerry click here. For more ratings news on BlackBerry click here.

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Retain Integrity As Analyst
Dan on 2013-04-16 08:18:22
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It seems you are one of the few of massive wall street analysts that still retain integrity and have done due diligence.

Thanks for your check and information.

Blackberry will defeat overly un-proportional negativity and blatant manipulation very soon!

re:few of massive wall street analysts that
Paul Fezziwig on 2013-04-17 17:49:49
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It does appear this the media.

There are many more credible analysts offering competent research and analysis but the media dioesn't want to report their findings....doesn't 'sell' like the wild and bogus analysts statements coming from the likes of Detwiler Fenton, Pacific Crest, MKM Partners. Most financial news outlets have become nothing more than gossip rags who copy and paste the most outrageous claims corrupt analysts feed them.

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