Imperial Capital Raised Price Target on BlackBerry (BBRY) to $9 Following 3Q Beat
Imperial Capital reiterated an In-Line rating on BlackBerry (NASDAQ: BBRY), and raised the price target to $9.00 (from $7.00), following the company's 3Q earnings report. On 12/18/15, before the market open, BBRY reported F3Q16 adjusted revenue of $557mn and adjusted EPS loss of $0.03, exceeding Street revenue estimates of $489mn and adjusted EPS loss estimates of $0.14.
Analyst Michael Kim commented, "We are maintaining our In-Line rating on BBRY shares and raising our one-year price target to $9 from $7 based on sum-of-the-parts valuation. Our price target implies potential upside of 3% above recent levels. BBRY achieved continued progress on its turnaround strategy, with strongerthan-expected organic growth in software license revenue in F3Q16. The company also benefited from a significant intellectual property (IP) licensing agreement, offsetting greater erosion in Service Access Fees (SAFs). We look for improved hardware revenue with the rollout of the company’s new Android-based Priv phone, though visibility on sustained growth and profitability remains limited, given the intensely-competitive mobile phone market."
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Shares of BlackBerry closed at $8.72 yesterday.