Blackberry / Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) CEO Thorsten Heins put on a brave face for the company’s annual shareholder meeting yesterday, just a few weeks after the firm reported an earnings loss that sent its shares plummeting . Heins said BlackBerry is still in the middle of its turnaround plan and asked investors for patience. He also said the company was open to any options that would create value for shareholders.
Deutsche Bank AG (NYSE:DB) (ETR:DBK) noted that management glosses over tough questions at meetings and they came away unimpressed from Blackberry / Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)’s shareholder meeting.
Management Did A Good Job Of Redirection
Excerpts like “progress can be volatile,” “long-term transition” and that Q1 was “food for thought” is not the sort the language Deutsche Bank were hoping to hear. Previously, it was this forum that pushed out the old management and drove the CORE program; however, Deutsche Bank did not get the sense that management feels any sort of change is needed now.
Management Proactively Considering Partnerships In Enterprise
While management made this point during the meeting, the company has already been through a period where all strategic options were on the table. Now Deutsche Bank AG (NYSE:DB) (ETR:DBK) wonder which companies might be left as a partner of any sort. Deutsche Bank do think that the Enterprise traction is a relative positive sign, but compared to Mobile Iron, Airwatch and Citrix, the feature sets in their MDM platform still lag others so maintaining their old relevance will be a challenge.
Management’s Inability To Face The Serious Issues
Deutsche Bank AG (NYSE:DB) (ETR:DBK) said that one questioner went so far as to call the Z10 rollout in North America a disaster. While Deutsche Bank own checks pointed to a somewhat dismal launch, it appears the company take-away was that this was a learning experience. To a company that has never launched a phone this would be a good assessment, but not to one that has been through multiple launches. Deutsche Bank think this type of commentary highlights management’s inability to face the serious issues at hand after the launches of their two hero devices.
Deutsche Bank Maintain Ratings And Price Target Of BBRY
Deutsche Bank AG (NYSE:DB) (ETR:DBK) price target is based on a DCF analysis using 11 percent discount rate and 3 percent growth rate, consistent with the industry’s longer-term average growth rate. Upside risks to their price target include the potential for Blackberry / Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)’s new platform BB10 to outpace Deutsche Bank expectations. Also, better than expected consumer adoption of Blackberr’s existing handset BB7 product line could increase sales above projections.