FBR Capital Upgrades BlackBerry (BBRY) to Market Perform

February 18, 2014 7:01 AM EST
Get Alerts BBRY Hot Sheet
Price: $11.57 --0%

Rating Summary:
    4 Buy, 31 Hold, 13 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 8 | New: 73
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FBR Capital upgraded BlackBerry (NASDAQ: BBRY) from Underperform to Market Perform with a price target of $10.00, saying while it is too early to model the new business with any degree of certainty, they expect the company's liquid assets and early positive momentum could limit downside in shares in the near term.

Analyst Scott Thompson sees several themes and trends playing in favor of BlackBerry: (1) a refreshed management team that appears focused on forging a reasonably direct path to profitability; (2) a slow, yet decisive and strategic shift away from the competitive consumer smartphone business into four more promising divisions: mobile device management (MDM), BBM, QNX, and a devices business focused on more profitable business; and (3) rapid execution against cash-generating initiatives, including the potential sale of real estate assets and recently revalued inventory ($4.6B adjustment).

"While we find it probable that a true turnaround could take several additional quarters to take form, we see potential for more upside well before needing to focus on potential downside in shares," Thompson 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 $8.98 yesterday.

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