BlackBerry (BBRY) Target Lifted at Canaccord Genuity on Updated SOTP

March 31, 2014 8:50 AM EDT Send to a Friend
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Price: $9.98 -2.82%

Rating Summary:
    7 Buy, 38 Hold, 16 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 22 | New: 12
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Canaccord Genuity analyst T. Michael Walkley boosted his price target on BlackBerry (NASDAQ: BBRY) from $6 to $8 following Q4 results based on a sum-of-parts analysis.

Walkley notes February quarter results were soft. However, a better services versus hardware revenue mix and significantly lower operating expenses versus our estimates resulted in a non-GAAP loss of $(0.08), above their $(0.55) estimate. "While we remain impressed with BlackBerry’s execution on its cost reduction initiatives, we believe the new management’s long-term plans are still in early stages of execution with limited near-term sales visibility, and we anticipate BlackBerry will continue to post operating losses through F2015. We anticipate gradually improving trends following the BES12 launch in November and believe BlackBerry could achieve break-even results exiting F2016," the analyst said.

He added, "While we believe BlackBerry’s balance sheet and $2.7B in gross cash buy time for CEO John Chen to implement his new strategies, we believe the shares reflect a more stable company and maintain our HOLD rating."

The firm raised FY 20015 EPS from ($0.73) to ($0.40).

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 $8.41 yesterday.




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