BlackBerry Ltd. (BBRY) Given Underperform Rating at Credit Suisse Group AG
Credit Suisse Group AG reaffirmed their underperform rating on shares of BlackBerry Ltd. (NASDAQ:BBRY) in a research report sent to investors on Thursday morning. Credit Suisse Group AG currently has a $6.00 target price 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 wrote.
A number of other analysts have also recently commented on BBRY. MKM Partners reiterated a hold rating on shares of BlackBerry in a research note on Sunday, June 26th. Zacks Investment Research cut shares of BlackBerry from a buy rating to a hold rating in a research note on Monday, June 6th. Wells Fargo & Co. reiterated a market perform rating and issued a $7.62 price target on shares of BlackBerry in a research note on Monday, June 13th. Deutsche Bank AG reiterated a hold rating on shares of BlackBerry in a research note on Monday, June 27th. Finally, Imperial Capital reiterated an in-line rating and issued a $7.00 price target on shares of BlackBerry in a research note on Tuesday, June 28th. 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. BlackBerry currently has an average rating of Hold and an average price target of $7.84.
Shares of BlackBerry (NASDAQ:BBRY) traded up 0.693% on Thursday, reaching $7.995. 1,817,197 shares of the company traded hands. The stock’s market cap is $4.18 billion. The stock has a 50 day moving average of $7.80 and a 200 day moving average of $7.31. BlackBerry has a 52-week low of $6.04 and a 52-week high of $9.46.
BlackBerry (NASDAQ:BBRY) last announced its quarterly earnings results on Wednesday, September 28th. The smartphone producer reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.02. The firm earned $352 million during the quarter. BlackBerry had a negative net margin of 78.41% and a negative return on equity of 3.13%. The business’s revenue was down 28.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.13) EPS. On average, analysts expect that BlackBerry will post $70.89 earnings per share for the current year.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Ameriprise Financial Inc. increased its position in shares of BlackBerry by 3.6% in the second quarter. Ameriprise Financial Inc. now owns 33,078 shares of the smartphone producer’s stock worth $222,000 after buying an additional 1,147 shares during the period. Ladenburg Thalmann Financial Services Inc. increased its position in shares of BlackBerry by 3.0% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 67,596 shares of the smartphone producer’s stock worth $545,000 after buying an additional 1,959 shares during the period. World Asset Management Inc increased its position in shares of BlackBerry by 7.8% in the second quarter. World Asset Management Inc now owns 32,372 shares of the smartphone producer’s stock worth $217,000 after buying an additional 2,330 shares during the period. Andra AP fonden increased its position in shares of BlackBerry by 2.5% in the second quarter. Andra AP fonden now owns 130,500 shares of the smartphone producer’s stock worth $1,131,000 after buying an additional 3,200 shares during the period. Finally, Clinton Group Inc. increased its position in shares of BlackBerry by 13.2% in the second quarter. Clinton Group Inc. now owns 54,992 shares of the smartphone producer’s stock worth $369,000 after buying an additional 6,417 shares during the period. 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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