UPDATE: BlackBerry (BBRY) Looks More Like Option Than Investment, Says Analyst; Sterne Agee CRT Starts at Neutral

Sterne Agee CRT initiated coverage on BlackBerry (NASDAQ: BBRY) with a Neutral rating and a price target of $6. Analyst Rob Cihra said the stock seems more like an option and takes a "leap of faith."

"We initiate BlackBerry (BBRY) at Neutral with our $6 target equivalent to an EV/S of 1.4x on CY16E, or 4-5x Software-only revs. BBRY is implementing a wholesale shift of business and economic model to software, but the stock seems more an option than investment right now," said Cihra.

"A shadow of its former smartphone self, BBRY has nonetheless cut costs to positive cash flow and has 3 valid vectors: 1) grow enterprise Software to backfill rapidly eroding legacy Services by leveraging BES for multi-OS MDM/EMM, 2) stabilize Hardware and 3) grow in IoT. But all still require leaps of faith," 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 $6.49 yesterday.

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