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UPDATE: MKM Raises BlackBerry (BBRY) to Neutral; Co Would Have Accepted Any Offer at $7/Sh or Above

November 4, 2013 1:40 PM EST Send to a Friend
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Price: $10.89 +1.30%

Rating Summary:
    7 Buy, 38 Hold, 16 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 21
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(Updated - November 4, 2013 2:33 PM EST)

MKM Partners upgraded BlackBerry (NASDAQ: BBRY) from Sell to Neutral with a modified price target of $6 (from $7). Despite the upgrade, analyst Michael Genovese isn't very optimistic given the company's failed auction, as he thinks the board would have accepted any offer at $7 per share or above.

"The failure of the auction appears to confirm our views that BlackBerry's patents are not very valuable, and that it is difficult to get comfortable with the levels at which subscribers and handset shipments might stabilize. While we are upgrading the stock following today's double-digit percentage decline, we are also reducing our fair value estimate to $6 from $7," said Genovese.

"Our new FV reflects $0.50 per share reductions in our estimates for the NPV of the Services business and for the QNX (BlackBerry 10) operating system. Our new sum-of-the-parts valuation is based on $4/sh. for the remaining Services profits, $1.50/sh. for the intellectual property and $0.50/sh. for QNX," 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 $7.77 yesterday.




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