Android app on Google Play

BlackBerry (BBRY) Purchase Obligations Will Limit Takeout Premium, Says Pacific Crest

August 16, 2013 9:41 AM EDT Send to a Friend
Get Alerts BBRY Hot Sheet
Price: $9.95 -3.12%

Rating Summary:
    7 Buy, 38 Hold, 16 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 23 | New: 13
Trade BBRY Now!
Join SI Premium – FREE
BlackBerry's (Nasdaq: BBRY) off-balance sheet purchase obligations will limit the premium it will receive in a potential takeover, thinks Pacific Crest analyst James Faucette. BlackBerry has a total of $5.3 billion in obligations, including $4.3 billion in purchase order commitments.

In his view, a consortium may justify paying $8-$10 per share based on service business cash flows, but they may "rush for exits" if new products fall flat and fail to result in positive returns.

Pacific Crest has an Underperform rating on BlackBerry.

For an analyst ratings summary and ratings history on BlackBerry (NASDAQ: BBRY) click here. For more ratings news on BlackBerry click here.

Shares of BlackBerry closed at $10.96 yesterday.




You May Also Be Interested In


Related Categories

Analyst Comments, Hot Comments, Mergers and Acquisitions

Related Entities

Pacific Crest Securities

Comments

Faucette
Donald Duck on 2013-08-16 12:19:40
Mark as Spam | Reply to this comment

Give it up already.


Add Your Comment