Deutsche Bank Raised BlackBerry (BBRY) to Hold; Chen Described as 'Suitable'

November 5, 2013 8:06 AM EST
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Price: $7.13 +0.42%

Rating Summary:
    7 Buy, 39 Hold, 16 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank upgraded BlackBerry (NASDAQ: BBRY) from Sell to Hold with a price target of $6.00 (unchanged0. Analyst Brian Modoff described BlackBerry's new CEO John Chen as "suitable" but he believes significant challenges remain.

"While we continue to believe that Blackberry has significant challenges ahead of it, we think the $1 billion capital infusion provides a decent runway for Mr. Chen to attempt a turnaround focused on software and services. To be clear though, we are not positive on the company’s prospects if its future will include the handset business, as we believe this business unit will continue to burn significant amounts of cash and feel this cash is much better served by targeting actions such as the conversion of BES 10 test customers to commercial accounts,' said Modoff .

"The investment universe is filled with stories of brilliant managers being outdone by businesses with terrible economics and this is a high risk situation by any measure. It is with this sentiment, that we remain cautious on the prospects of a complete turnaround similar to that of Mr. Chen's old firm, Sybase; however we think some value can be salvaged from Blackberry and we believe that Mr. Chen could provide that strategic direction," he said.

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

Shares of BlackBerry closed at $6.50 yesterday.

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