UPDATE: Bernstein Upgrades BlackBerry (BBRY) to Market Perform; Assets Worth $6-$13B

December 16, 2013 7:34 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: 25 | Down: 19 | New: 35
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(Updated - December 16, 2013 8:26 AM EST)

Bernstein upgraded BlackBerry (NASDAQ: BBRY) from Underperform to Market Perform with a price target of $5.50. Analyst Pierre Ferragu remains cautious but he thinks downside is limited.

"As we expected, Fairfax's attempt to take out Blackberry has failed, driving the stock to all time lows. We believe the near term will be very challenging, and we model almost 800m burnt in this quarter alone," said Ferragu.

"However, our detailed analysis shows that the company has assets worth $6bn-$13bn. In this context, current price reflects a conservative SOTP valuation, with limited room for further decline in the stock price also including liquidation costs," he added. "We upgrade the stock to market perform, with a target price of $5.5, as we think that most of the trade is now behind us, while it is also too early to take a position on the potential success of the company's turnaround."

As we expected, Fairfax’s attempt to take out Blackberry has failed, driving the stock to all time lows. We believe the near term will be very challenging, and we model almost 800m burnt in this quarter alone.
However, our detailed analysis shows that the company has assets worth $6bn-$13bn. In this context, current price reflects a conservative SOTP valuation, with limited room for further decline in the stock price also including liquidation costs.
We upgrade the stock to market perform, with a target price of $5.5, as we think that most of the trade is now behind us, while it is also too early to take a position on the potential success of the company's turnaround.

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 $6.08 yesterday.


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