MKM Partners Raises Price Target on BlackBerry (BBRY) Following 2Q Beat

September 29, 2016 10:46 AM EDT
Get Alerts BBRY Hot Sheet
Price: $7.26 -0.14%

Rating Summary:
    7 Buy, 39 Hold, 16 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 7
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MKM Partners reiterated a Neutral rating on BlackBerry (NASDAQ: BBRY), and raised the price target to $8.00 (from $7.50), following the company's 2Q earnings report. EPS came in better than expected at $0.00, compared to ($0.06) estimates. Total revenues came in at $352mn, compared to consensus estimates at $392mn.

Analyst Michael Genovese commented, "2QFY17 nonGAAP GMs/EPS came in better than expected at 62.2%/$0.00, compared to our 50.5%/($0.06) estimates. Mobility Solutions or Hardware GMs improved to 26% from 8% and segment operating loss fell to $8mn from $21mn versus the prior quarter, despite shortfalls in Mobility Solutions revenues ($105mn actual vs. $155mn MKMe), units (0.4mn actual vs. 0.5mn MKMe) and ASPs ($271 actual vs. $293 MKMe). We remain Neutral on BBRY because the company also missed 2QFY17 Software & Services revenues ($156mn actual vs. $171mn MKMe). We fail to see which of the Software business lines (Enterprise Mobility Management, Automotive, IoT, etc) will turn into a strong market share gainer and revenue driver for BlackBerry going forward."

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 $8.33 yesterday.

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