Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) shares rose as much as 2 percent at the NASDAQ on Monday just days before the company’s next earnings report will be released. Analyst expectations for the company’s most recently completed quarter are somewhat mixed.
According to StreetInsider, 21 analysts have a sell rating on Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB), 27 of them have a hold rating on the stock and 10 of them have a buy rating.
TD Securities Maintains Hold Rating On Research In Motion Ltd (BBRY)
TD Securities analyst Scott Penner maintained his hold rating and $17 per share price target on the stock. He said in his report this week that investors should part particular attention to the BlackBerry maker’s recurring revenue. He believes that the company’s subscriber base will be a big problem for it. Penner said it’s questionable whether Research In Motion can continue to be profitable as its users switch to a new services model.
He points out that in fiscal year 2013, software services was 100 percent of the company’s gross margin dollars. As more and more users switch to BlackBerry 10, which no longer brings in revenue, the company’s average revenue per user will keep falling and, he believes, could even accelerate.
Positive Ratings For Research In Motion Ltd (BBRY)
Some analysts have a much more positive view on Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB), however. Wells Fargo analysts increased their expectations for the company’s next earnings report, which is due Friday. Analysts at more than one firm said early evidence indicates that the BlackBerry Q10, which is the first BlackBerry 10 device to have a physical keyboard, appears to be selling better than the BlackBerry Z10, which is the touchscreen version of the device.
Jefferies analyst Peter Misek, who’s very negative on Apple Inc. (NASDAQ:AAPL) right now, says that his channel checks for Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) show that the company looks good going into Friday’s report. Also analysts at Raymond James believe the company will surprise on Friday.