Imperial Capital Cuts Price Target on BlackBerry (BBRY) Following 2Q16 Earnings Results
Imperial Capital reiterated an In-Line rating on BlackBerry (NASDAQ: BBRY), and cut the price target to $7.00 (from $9.50), following the company's 2Q16 earnings results. BBRY reported revenue of $490mn and adjusted net loss of $0.13 per share, below
Street estimates of $605mn and $0.09, respectively.
Analyst Michael Kim commented, "We are maintaining our In-Line rating and lowering our one-year price to $7 from $9.50 on BBRY shares based on our reduced estimates. Our price target implies potential upside of 11% above recent levels. BBRY achieved mixed progress on its strategic turnaround in F2Q16, with flatter software growth and weaker hardware sales. We await improved visibility on the adoption of BES12 and potential accretion from the pending acquisition of Good Technology. We also look for stronger progress of the BBM business, which continues to lag management’s expectations."
"We believe BBRY’s upcoming expansion into the Android market with the new Priv device could represent a significant growth opportunity, though share gains could prove challenging in this intensely competitive market. Given potential near-term headwinds, we think investors will remain on the sidelines until BBRY achieves stronger momentum and visibility on its strategic turnaround, including a higher mix of recurring revenue from subscriptions."
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 $6.30 yesterday.