Nomura Reiterates Neutral Rating for BlackBerry (BBRY)
BlackBerry (NASDAQ:BBRY)‘s stock had its “neutral” rating restated by equities researchers at Nomura in a research report issued on Monday, American Banking and Market News reports. They currently have a $9.00 price objective on the stock, down from their previous price objective of $10.00. Nomura’s target price would suggest a potential upside of 3.15% from the company’s current price.
The analysts wrote, “BlackBerry pre-announced Q2 headline results, saying that revenues will be around $1.6bn (consensus was $3.1bn), that an inventory write-down would total $930-960m, that adjusted net loss would hit $250-265m, and that cash outflow would total nearly $500m. This might just be the worst miss that we have seen in 17 years of covering tech stocks. Management has announced more headcount cuts, a further slimming down of the handset portfolio, and an exit from the consumer market. Many IT departments have started looking at BlackBerry alternatives. The board still has no update on its search for strategic alternatives. In the absence of an announcement on strategic options by the board, management can only try to manage the pace of declines.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Macquarie reiterated an “underperform” rating on shares of BlackBerry (NASDAQ:BBRY) in a research note to investors on Monday. They now have a $7.00 price target on the stock, down previously from $9.00. Separately, analysts at Robert W. Baird upgraded shares of BlackBerry (NASDAQ:BBRY) from an “underperform” rating to a “neutral” rating in a research note to investors on Monday. They now have a $8.00 price target on the stock, down previously from $9.00. Finally, analysts at RBC Capital downgraded shares of BlackBerry (NASDAQ:BBRY) from a “sector perform” rating to an “underperform” rating in a research note to investors on Monday. They now have a $5.00 price target on the stock, down previously from $15.00.
Nineteen investment analysts have rated the stock with a sell rating, twenty-one have assigned a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus price target of $9.65.
BlackBerry (NASDAQ:BBRY) opened at 8.725 on Monday. BlackBerry has a one year low of $6.22 and a one year high of $18.32. The stock has a 50-day moving average of $10.29 and a 200-day moving average of $12.58. The company’s market cap is $4.497 billion. BlackBerry also was the target of unusually large options trading activity on Friday. Traders acquired 113,542 put options on the company. This represents an increase of 337% compared to the typical volume of 25,984 put options.
BlackBerry (NASDAQ:BBRY) last released its earnings data on Friday, June 28th. The company reported ($0.13) earnings per share for the quarter, missing the analysts’ consensus estimate of $0.04 by $0.17. The company had revenue of $3.07 billion for the quarter, compared to the consensus estimate of $2.81 billion. BlackBerry’s revenue was up 9.4% compared to the same quarter last year. Analysts expect that BlackBerry will post $-0.68 EPS for the current fiscal year.
Research In Motion Limited is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market.
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