Credit Suisse Group AG reiterated their underperform rating on shares of BlackBerry Ltd. (NASDAQ:BBRY) in a research note issued to investors on Thursday morning. Credit Suisse Group AG currently has a $6.00 price objective on the smartphone producer’s stock.
“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,,” the firm’s analyst commented.
BBRY has been the topic of a number of other research reports. Zacks Investment Research upgraded BlackBerry from a hold rating to a buy rating and set a $9.00 price target on the stock in a report on Tuesday, August 23rd. JPMorgan Chase & Co. lifted their price target on BlackBerry from $7.00 to $8.00 and gave the company a neutral rating in a report on Monday, August 29th. TD Securities reiterated a buy rating and set a $9.00 price target on shares of BlackBerry in a report on Monday, August 29th. Wells Fargo & Co. reiterated a positive rating and set a $7.62 price target on shares of BlackBerry in a report on Tuesday, August 30th. Finally, Raymond James Financial Inc. upgraded BlackBerry from a market perform rating to an outperform rating and lifted their price target for the company from $8.00 to $10.50 in a report on Friday, August 12th. Two analysts have rated the stock with a sell rating, fourteen have given a hold rating and four have issued a buy rating to the stock. BlackBerry has an average rating of Hold and a consensus target price of $7.92.
Shares of BlackBerry (NASDAQ:BBRY) opened at 7.85 on Thursday. The firm’s market cap is $4.11 billion. The stock has a 50 day moving average price of $7.79 and a 200-day moving average price of $7.29. BlackBerry has a 1-year low of $6.23 and a 1-year high of $9.46.
BlackBerry (NASDAQ:BBRY) last issued its earnings results on Wednesday, September 28th. The smartphone producer reported ($0.03) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.05) by $0.02. The business had revenue of $352 million for the quarter. BlackBerry had a negative return on equity of 3.36% and a negative net margin of 78.41%. The business’s revenue was down 28.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.13) earnings per share. On average, equities research analysts expect that BlackBerry will post ($0.03) earnings per share for the current fiscal year.
Several hedge funds have recently made changes to their positions in BBRY. IFP Advisors Inc boosted its stake in shares of BlackBerry by 83.9% in the second quarter. IFP Advisors Inc now owns 20,490 shares of the smartphone producer’s stock worth $137,000 after buying an additional 9,350 shares in the last quarter. Legal & General Group Plc boosted its stake in shares of BlackBerry by 1.2% in the second quarter. Legal & General Group Plc now owns 2,770,120 shares of the smartphone producer’s stock worth $18,550,000 after buying an additional 32,775 shares in the last quarter. Cubist Systematic Strategies LLC boosted its stake in shares of BlackBerry by 37.5% in the second quarter. Cubist Systematic Strategies LLC now owns 35,900 shares of the smartphone producer’s stock worth $241,000 after buying an additional 9,790 shares in the last quarter. Water Island Capital LLC boosted its stake in shares of BlackBerry by 106.3% in the second quarter. Water Island Capital LLC now owns 16,500 shares of the smartphone producer’s stock worth $111,000 after buying an additional 8,500 shares in the last quarter. Finally, Guggenheim Capital LLC boosted its stake in shares of BlackBerry by 6.5% in the second quarter. Guggenheim Capital LLC now owns 128,335 shares of the smartphone producer’s stock worth $861,000 after buying an additional 7,786 shares in the last quarter. 57.99% of the stock is owned by institutional investors.
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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