TD Securities Starts BlackBerry (BBRY) at Buy; Analyst Notes 'Significant Optionality'

TD Securities initiated coverage on BlackBerry (NASDAQ: BBRY) with a Buy rating and a price target of $9.00. Analyst Daniel Chan sees BlackBerry was undervalued and he noted "significant optionality."

Chan said shares are undervalued for the following reasons:

1. "Software sales are growing to offset declines in Service Access Fees (SAF). Last quarter, organic software sales grew 43% y/y and we expect continued growth over the next couple of years.
2. There is significant optionality with respect to the hardware business, which has largely been de-risked.
3. BlackBerry has started monetizing its patents, which we believe could be worth ~$2bln.
4. Net cash of $1.5bln provides support and significant optionality."

"As BlackBerry has many options available to grow and improve its financial performance, we are recommending investors to Buy BlackBerry shares," added the analyst.

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 $7.07 yesterday.

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