BlackBerry: Can A Stock Be Down 22% YTD, And Still Be A Winner?

20 Jan 2016 | Author: | No comments yet »

Analysts at RBC Capital Mkts R), Set a $9.0 Target Price.

BlackBerry (NASDAQ:BBRY) just had their share rating of a ‘”Sector Perform”‘ issued by research analysts at RBC Capital Mkts, who now has a $9.0 target PPS on the $4.53 billion market cap company or a 4.53% upside potential. The smartphone maker managed to silence the Street’s skeptics, as it reported better-than-expected third quarter of fiscal 2016 (3QFY16) results, on back of strong Software and Services revenues.

Shares moved up after the company reported better-than-expected financial results for third quarter fiscal 2016.This led to solid volume too with far more shares changing hands than in a normal session. The smartphone producer reported ($0.03) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.15) by $0.12, Analyst Ratings.Net reports. This breaks the recent trend of the company, as the stock is now trading above the volatile price range of $7.37 to $8.18 over the past one-month time frame. The company may break even in the current quarter, but this could be complicated by investments being made toward growing both software and hardware sales, said Chief Executive John Chen, who sees a return to sustainable profitability in fiscal 2017, which starts March 1. BlackBerry has staked its turnaround on software and more aggressively licensing its trove of patents after its once-dominant handsets conceded the consumer smartphone market. “BlackBerry hit a software number that investors have been looking for them to hit for quite some time,” said Morningstar analyst Brian Colello. “I think the investment in security, in software, is the right move.” (Reuters) Report On the other news report, BlackBerry Limited (BBRY), is a provider of mobile communications and services.

MKM Partners reissued a “hold” rating and issued a $8.00 target price (down previously from $8.50) on shares of BlackBerry in a research report on Friday, September 4th. BlackBerry CEO John Chen commented on the firm’s upbeat quarterly results, and said: “BlackBerry has a solid financial foundation, and we are executing well.

Six investment analysts have rated the stock with a sell rating, twenty-one have assigned a hold rating, two have issued a buy rating and one has issued a strong buy rating to the stock. Basic GAAP net income reflects a purchase accounting impact of $9 million on GAAP revenue, a non-cash credit associated with the change in the fair value of the debentures of $5 million (the “Q3 Fiscal 2016 Debentures Fair Value Adjustment”), pre-tax charges of $38 million related to restructuring and acquisition costs, stock compensation of $14 million, and amortization of attained intangibles of $18 million.

This is an important indicator as a higher ratio typically suggests that investors are expecting higher future earnings growth compared to companies in the same industry with lower price to earnings ratios. I anticipate this will result in sequential revenue growth in our software, hardware and messaging businesses in Q4.” Furthermore, the Canadian smartphone maker has been very active on the merger and acquisition (M&A) front, and spent nearly $849 million in the last twelve months.

This reflects $15 million of positive free cash flow, $636 million used in acquisition costs for AtHoc and Good Technology and $10 million used to repurchase 1.6 million shares. Apple Inc. (NASDAQ:AAPL) has negotiated a truce with Ericsson after spending several months in courts around the globe disputing patent infringement lawsuits. The tech companies have reached an agreement that includes a cross patent license covering their standard-essential technologies, including UMTS, GSM, and LTE cellular developments, in addition to other patent rights granted to both parties. Operating cash flow was $19 million. “I am happy with our continued progress on BlackBerry’s planned priorities, leading to 14 percent sequential growth in total revenue for Q3. The first and foremost term of the compromise is that Ericsson (NASDAQ:ERIC) and Apple will resolve all ongoing patent-related litigation between them.

Previously, analysts estimated that if the legal disputes ended in Ericsson’s favor, Apple would pay between $230 million and $700 million (2 to 6 billion Swedish Krona). According to Zacks Investment Research, “BlackBerry Limited is involved in the design, manufacture and marketing of wireless solutions for the mobile communications market. The Company’s BTS business consists of five units: QNX Software Systems Limited (QNX), Certicom, Paratek, the BlackBerry Internet of Things (IoT) Platform, and Intellectual Property and Patent Licensing (IPPL).

The Company’s Messaging business is engaged in providing BlackBerry Messenger (BBM), the Company’s instant mobile to mobile private messaging service. BlackBerry Limited, formerly known as Research In Motion Limited, is headquartered in Waterloo, Canada.” BlackBerry – Receive News & Ratings Via Email – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings with’s FREE daily email newsletter. All investigations in the US International Trade Commission are to end immediately. “We are pleased with this new agreement with Apple, which clears the way for both companies to continue to focus on bringing new technology to the global market, and opens up for more joint business opportunities in the future,” said Ericsson’s chief of intellectual properties, Kasim Alfalahi. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. This includes, developing next generation cellular standards of 5G technology, optimization of video traffic, and enhancing and optimizing existing wireless technologies and networks to benefit operators and users across the globe.

The compromise on Apple’s side comes evidently under CEO Tim Cook, as he has previously spoken of reducing the legal complications the company is always subject to. Shire PLC (ADR) (NASDAQ:SHPG) plans to further sweeten its £20 billion ($30 billion) takeover bid for Baxalta with cash, according to a latest report by Sunday Times. In August, Shire made an all-share offer to acquire Baxalta Inc. (NYSE:BXLT), offering more than 30% premium over the latter’s share price at that time. The bid entirely consisted of stock in order to preserve tax benefits of Baxalta’s spinoff, as US tax laws prevent spinoffs to be used as a “device” to funnel cash to shareholders.

He touted its extensive global reach, expanding hemophilia operations, and strong product demand which can easily make Baxalta an independent success. The drugmaker has plunged nearly 27% since August 4, partly due to a biotech pullback triggered by ongoing national debate over drug price inflation, and also due to investors’ concerns over the viability of the deal. In a note to clients, Bernstein analyst Ronny Gal has said that Baxalta is unlikely to go for an offer valued below $50 a share, or a total value of $34 billion. Additionally, Baxalta has delivered consistently encouraging performance in 3QFY15 as well, having raised its sales growth projection to 8% for the year. Baxalta also has an attractive cancer portfolio which it recently boosted with a $900 million buyout of a leukemia drug Oncaspar; it also consists of at least three other products in late-stage development.

The US-based biopharma giant is also working on a biosimilar pipeline, boasting imitations of blockbusters like Amgen’s Enbrel and AbbVie’s Humira. The drugmaker aims to decrease reliance on its highest grossing drug for attention deficit hyperactivity disorder, Vyvanse, and increase focus onto rare diseases – a market which already accounts for 40% of Shire’s top-line. A Shire-Baxalta merger may deliver more than $20 billion in annual sales by 2020, helping to establish one of world’s biggest rare-disease drugmakers.

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