Zacks Investment Research Downgrades BlackBerry (BB) to Hold

BlackBerry (NYSE:BB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Shares of BlackBerry outperformed its industry in 2017. The stock  rallied 62.2% compared with its industry's gain of only 10.9%. BlackBerry’s decision to focus exclusively on software business seems to be paying off as robust software sales are aiding the company immensely. In fact, software and service revenues are estimated to rise between 10% and 15% in fiscal 2018. Growth of its cybersecurity business is also a huge positive. Additionally, the company has inked multiple deals to expand its software business. BlackBerry’s projection of its free cash flow in fiscal 2018 is also encouraging. However, the unfavorable verdict in the Nokia case is disappointing. Charges pertaining to the issue hurt the bottom line in the fiscal fourth quarter. In fact, high operating expenses are likely to limit bottom-line growth in the near future.”

BB has been the subject of a number of other reports. Vetr downgraded shares of BlackBerry from a “sell” rating to a “strong sell” rating and set a $10.12 price target for the company. in a report on Wednesday, October 11th. Canaccord Genuity upped their price target on shares of BlackBerry from $10.00 to $11.00 and gave the company a “hold” rating in a report on Tuesday, October 17th. Scotiabank reissued an “outperform” rating and issued a $13.50 price target on shares of BlackBerry in a report on Thursday, September 21st. Bank of America upped their price target on shares of BlackBerry from $7.50 to $8.00 and gave the company an “underperform” rating in a report on Friday, September 22nd. Finally, Royal Bank of Canada upped their price target on shares of BlackBerry from $9.50 to $10.50 and gave the company a “sector perform” rating in a report on Friday, September 29th. Five research analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have assigned a buy rating to the company’s stock. BlackBerry currently has an average rating of “Hold” and an average price target of $10.48.

Shares of BlackBerry (NYSE:BB) traded up $0.42 during midday trading on Wednesday, reaching $13.79. 10,073,785 shares of the company’s stock were exchanged, compared to its average volume of 15,811,867. BlackBerry has a 52 week low of $6.65 and a 52 week high of $13.97. The company has a quick ratio of 4.26, a current ratio of 4.26 and a debt-to-equity ratio of 0.33. The firm has a market cap of $7,300.00, a P/E ratio of 14.36 and a beta of 1.09.

BlackBerry (NYSE:BB) last issued its quarterly earnings results on Wednesday, December 20th. The company reported ($0.52) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.03) by ($0.49). BlackBerry had a net margin of 37.36% and a return on equity of 3.70%. The business had revenue of $235.00 million during the quarter, compared to analyst estimates of $216.70 million. During the same period in the previous year, the company posted $0.02 earnings per share. BlackBerry’s revenue was down 21.9% compared to the same quarter last year. sell-side analysts anticipate that BlackBerry will post -0.02 EPS for the current year.

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About BlackBerry

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.

Analyst Recommendations for BlackBerry (NYSE:BB)

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