MKM Partners Raises Price Target on BlackBerry (BBRY) Following 2Q Beat
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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."
Shares of BlackBerry closed at $8.33 yesterday.
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