FBR Capital Markets Reiterates Underperform Rating for BlackBerry (BBRY)
BlackBerry (NASDAQ:BBRY)‘s stock had its “underperform” rating restated by stock analysts at FBR Capital Markets in a report issued on Wednesday, American Banking & Market News reports.
The analysts wrote, “We expect shares of Blackberry to remain range-bound through the expiration of the tentative agreement with Fairfax. The company has recently published its F2Q14 6-K, offering positive updates that suggest the company may be on the right path to significantly reduce a portion of its on- and off-balance-sheet commitments. Supplier commitments have come down significantly over the three-month period, and a combination of reorganization efforts as well as an aggressive decline in its handset manufacturing capacities may leave BlackBerry closer to a cash flow neutral position (after restructuring) than many expect. As Fairfax’s November 4 deadline for a $9/share acquisition approaches and news of other potential buyers surfaces, we expect BBRY stock could prove resilient near the $8 level. However, we remain skeptical on the company’s ability to execute a turnaround of its device or service businesses, and we continue to believe that there are better investments in the smartphone ecosystem than BlackBerry.”
BlackBerry (NASDAQ:BBRY) traded down 0.50% during mid-day trading on Wednesday, hitting $7.94. 4,388,989 shares of the company’s stock traded hands. BlackBerry has a 52-week low of $7.46 and a 52-week high of $18.32. The stock has a 50-day moving average of $9.59 and a 200-day moving average of $11.98. The company’s market cap is $4.086 billion.
BlackBerry (NASDAQ:BBRY) last issued its quarterly earnings data on Friday, September 27th. The company reported ($0.47) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.15) by $0.32. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.63 billion. BlackBerry’s revenue was down 45.0% compared to the same quarter last year. Analysts expect that BlackBerry will post $-1.32 EPS for the current fiscal year.
BBRY has been the subject of a number of other recent research reports. Analysts at Zacks reiterated a “neutral” rating on shares of BlackBerry in a research note to investors on Tuesday. They now have a $8.25 price target on the stock. Separately, analysts at Macquarie upgraded shares of BlackBerry from an “underperform” rating to a “neutral” rating in a research note to investors on Monday. They now have a $7.00 price target on the stock. Finally, analysts at Sanford C. Bernstein downgraded shares of BlackBerry from a “market perform” rating to an “underperform” rating in a research note to investors on Thursday, October 3rd. They now have a $4.50 price target on the stock. Thirteen research analysts have rated the stock with a sell rating, twenty-five have assigned a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $9.33.
Research In Motion Limited is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market.
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