BlackBerry Ltd. (BBRY) Stock Rating Reaffirmed by Morgan Stanley
BlackBerry Ltd. (NASDAQ:BBRY)‘s stock had its “equal weight” rating reaffirmed by Morgan Stanley in a research report issued to clients and investors on Thursday, StockTargetPrices.com reports. They currently have a $7.00 target price on the smartphone producer’s stock. Morgan Stanley’s price objective points to a potential downside of 15.97% from the stock’s previous close.
The analysts wrote, “more revenue becomes recurring.” However, the firm is not ready to change its rating or price target, which remain Equal-Weight rated and at $7.Analysts James Faucette and Meta Marshall pointed out that BlackBerry sees 30 percent growth from its software/messaging business. They see 81 percent of second-quarter revenue from software/messaging was a recurring one. Therefore, the company needs to nearly double non-recurring revenue in the remaining period of the current fiscal year.In a research note, the brokerage said, “We think this will be a challenge to do, but perhaps the company is anticipating an uptick in perpetual license purchases at the end of the year. While the BlackBerry Radar deal signed with Caravan is a good win, we estimate that it only contributes $0.5 million in FY17 ($0.2–0.3 million of that recurring).”
Several other research analysts also recently weighed in on the company. Goldman Sachs Group Inc. reiterated a “sell” rating and set a $6.00 price target on shares of BlackBerry in a research note on Thursday. Credit Suisse Group AG reissued an “underperform” rating and set a $6.00 price objective on shares of BlackBerry in a report on Thursday. RBC Capital Markets reissued a “sector perform” rating and set a $9.00 price objective on shares of BlackBerry in a report on Monday. Wells Fargo & Co. reissued a “market perform” rating and set a $7.63 price objective on shares of BlackBerry in a report on Monday. They noted that the move was a valuation call. Finally, TD Securities reissued a “buy” rating and set a $9.00 price objective on shares of BlackBerry in a report on Friday, September 23rd. Two investment analysts have rated the stock with a sell rating, fifteen have given a hold rating and three have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $7.73.
BlackBerry (NASDAQ:BBRY) traded down 0.4790% on Thursday, reaching $8.2901. The company’s stock had a trading volume of 1,872,695 shares. The stock’s 50 day moving average price is $7.79 and its 200 day moving average price is $7.30. The firm’s market cap is $4.34 billion. BlackBerry has a 52-week low of $6.03 and a 52-week high of $9.46.
BlackBerry (NASDAQ:BBRY) last posted its quarterly earnings results on Wednesday, September 28th. The smartphone producer reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.02. The company earned $352 million during the quarter. BlackBerry had a negative return on equity of 4.49% and a negative net margin of 49.74%. The firm’s revenue was down 28.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.13) EPS. Equities research analysts expect that BlackBerry will post ($0.15) earnings per share for the current fiscal year.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of Montreal Can acquired a new position in BlackBerry during the second quarter valued at $32,778,000. Societe Generale purchased a new stake in shares of BlackBerry during the second quarter valued at approximately $2,013,000. Virginia Retirement System purchased a new stake in shares of BlackBerry during the first quarter valued at approximately $3,298,000. GMT Capital Corp purchased a new stake in shares of BlackBerry during the second quarter valued at approximately $393,000. Finally, Primecap Management Co. CA raised its stake in shares of BlackBerry by 1.8% in the first quarter. Primecap Management Co. CA now owns 76,097,907 shares of the smartphone producer’s stock valued at $615,632,000 after buying an additional 1,371,800 shares during the last quarter. Hedge funds and other institutional investors own 57.99% of the company’s stock.
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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