Wells Fargo Upgrades Research In Motion Ltd. (BBRY) to Outperform as New Analyst Takes Over
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Rating Summary:
10 Buy, 28 Hold, 20 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
"Our Outperform rating is predicated on the view that gross margin will improve as the mix of BB10 devices ramps and the existing BB7 portfolio (negative gross margin) declines," Um comments. "We note that BlackBerry shares have generally trended in the direction of gross margin. We believe enterprise service revenue (52% of BlackBerry’s service revenue) will not be impacted materially until FY2015 given the timing of the release of the BES 10 service pack and we have already modeled the potential impact to consumer service revenue."
He continued, "We recognize the challenges BlackBerry faces as well as the unknowns (lack of business model transparency, long-lived market acceptance, business model transitions that make modeling challenging, and competition), and there is likely to be more volatility around BBRY shares, but ultimately believe the valuation does not fit the current potential window of opportunity. While it may very well turn out that demand for BlackBerry 10 is limited, we believe the valuation already discounts some level of failure and think the risk/reward at this juncture of the BlackBerry 10 cycle is attractive."
The firm raised FQ4 FY2013 EPS/revenue to ($0.23)/$3.0bn from ($0.38)/$2.9bn (Street: ($0.29)/$2.9bn) and raise FY2014 EPS/revenue to ($0.22)/$12.7bn from ($1.44).$10.9bn (Street: ($0.57)/$12.7bn).
For an analyst ratings summary and ratings history on Research In Motion Ltd. click here. For more ratings news on Research In Motion Ltd. click here.
Shares of Research In Motion Ltd. closed at $16.05 yesterday, with a 52 week range of $13.52-$16.89.
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Wells FargoComments
BlackBerry's debt levels
This company's debt ratios bear some careful consideration .. oh wait I forgot THEY HAVE NOT DEBT!
Anyway once upon a time providers used to like to push them since they didn't load the network as much as iPhones. Is that still the case?
Swap
Shouldn't to and from be swaped here. See below:
The firm raised FQ4 FY2013 EPS/revenue to ($0.23)/$3.0bn from ($0.38)/$2.9bn (Street: ($0.29)/$2.9bn) and raise FY2014 EPS/revenue to ($0.22)/$12.7bn from ($1.44).$10.9bn (Street: ($0.57)/$12.7bn).
52 week range
52 week range is 6.22 - 18.32.
Surely we cannot consider BBRY but need to consider the old RIMM
thank you
wells fargo believes in BlackBerry and so do I, do you?
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Sloppy
Peter on Feb 7, 2013 11:21 AMMark as Spam | Reply to this comment
The company is not RIM, but "BlackBerry" and the device you show is 4 years old, not the BlackBerry 10 device just released