BlackBerry Ltd. (NASDAQ:BBRY)‘s stock had its “underperform” rating reaffirmed by Credit Suisse Group AG in a report released on Thursday, StockTargetPrices.com reports. They presently have a $6.00 price target on the smartphone producer’s stock. Credit Suisse Group AG’s target price points to a potential downside of 27.97% from the stock’s previous close.
The analysts wrote, “We continue to doubt the sustainability of the software business as the IP licensing revenue seems unpredictable. Additionally, we also question the quality of some of the acquisitions made in the Software segment, especially Good Technology, which could create significant integration risk,” Garcha wrote in a note.Related Link: Morgan Stanley Sees BlackBerry’s Software Targets As “Aggressive”Additionally, the company said it would discontinue its handset hardware development and outsource it to third-parties.”This shift to a royalty-rate business will likely have a negative impact on top line revenue for the hardware business, but should improve the segment’s GM and OM profile if this transition is successful,” Garcha highlighted.The analyst expressed concerns that Services business seems to be trending to zero long term, despite accounting for significant chunk of operating profit. “Despite the company transitioning its hardware business strategy, we believe, with the current structure, BBRY would still not be profitable unless software scales or the company cuts operating costs (which is happening). This remains a fine balancing act, in our view,”
BBRY has been the subject of a number of other reports. Wells Fargo & Co. reissued a “positive” rating and set a $7.62 price objective on shares of BlackBerry in a research note on Tuesday, August 30th. TD Securities reissued a “buy” rating and set a $9.00 price objective on shares of BlackBerry in a research note on Friday, September 23rd. Zacks Investment Research cut shares of BlackBerry from a “buy” rating to a “hold” rating in a research note on Wednesday, July 20th. RBC Capital Markets reissued a “sector perform” rating and set a $9.00 price objective on shares of BlackBerry in a research note on Monday. Finally, Imperial Capital dropped their price objective on shares of BlackBerry from $7.50 to $7.00 and set an “in-line” rating for the company in a research note on Thursday, June 16th. Two analysts have rated the stock with a sell rating, fifteen have given a hold rating and three have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $7.73.
Shares of BlackBerry (NASDAQ:BBRY) traded down 0.60% during trading on Thursday, hitting $8.28. The stock had a trading volume of 2,418,165 shares. BlackBerry has a 12-month low of $6.03 and a 12-month high of $9.46. The stock’s 50-day moving average is $7.79 and its 200-day moving average is $7.30. The stock’s market cap is $4.33 billion.
BlackBerry (NASDAQ:BBRY) last posted its quarterly earnings results on Wednesday, September 28th. The smartphone producer reported ($0.03) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.05) by $0.02. BlackBerry had a negative net margin of 49.74% and a negative return on equity of 4.49%. The company earned $352 million during the quarter. During the same quarter in the previous year, the business posted ($0.13) earnings per share. BlackBerry’s revenue was down 28.2% on a year-over-year basis. On average, equities research analysts expect that BlackBerry will post ($0.15) EPS for the current year.
Several large investors have recently added to or reduced their stakes in BBRY. IFP Advisors Inc increased its stake in BlackBerry by 83.9% in the second quarter. IFP Advisors Inc now owns 20,490 shares of the smartphone producer’s stock valued at $137,000 after buying an additional 9,350 shares during the last quarter. Legal & General Group Plc increased its stake in BlackBerry by 1.2% in the second quarter. Legal & General Group Plc now owns 2,770,120 shares of the smartphone producer’s stock valued at $18,550,000 after buying an additional 32,775 shares during the last quarter. Cubist Systematic Strategies LLC increased its stake in BlackBerry by 37.5% in the second quarter. Cubist Systematic Strategies LLC now owns 35,900 shares of the smartphone producer’s stock valued at $241,000 after buying an additional 9,790 shares during the last quarter. Water Island Capital LLC increased its stake in BlackBerry by 106.3% in the second quarter. Water Island Capital LLC now owns 16,500 shares of the smartphone producer’s stock valued at $111,000 after buying an additional 8,500 shares during the last quarter. Finally, Guggenheim Capital LLC increased its stake in BlackBerry by 6.5% in the second quarter. Guggenheim Capital LLC now owns 128,335 shares of the smartphone producer’s stock valued at $861,000 after buying an additional 7,786 shares during the last quarter. 57.99% of the stock is owned by institutional investors.
BlackBerry Company Profile
BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services.
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