BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is continuing to move forward with its platform transition, which according to a report from Cormark Securities dated June 17, 2014, is an “uphill battle.” Along with a major product transition, the Canadian firm is facing intense competition and lack of visibility. However, despite this, the expectations surrounding the short-term actions should boost the “positive sentiment,” believe analysts Richard Tse and Andrew McGee.

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According to analysts, the transition towards the enterprise could provide BlackBerry with a significant potential revenue opportunity, but “time is ticking on driving a sustainable business.”

Progress on BES12 main focus

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) will post its Q1 earnings report on Thursday, June 19 before the market opens. Tse and NcGee expect lower revenue owing to falling subscribers. For the quarter, the analysts estimate revenue of $972 million against the consensus estimate of $979 million, and operating EPS of -$0.27 versus a consensus estimate of -$0.25. The Canadian company is expected to ship 1.8 million handsets at an average price of $247. BlackBerry will end the quarter with 45 million subscribers, according to analysts. At the end of the quarter, BlackBerry is expected to have cash and investments of $2.7 billion and a net cash balance of $1.1 billion.

However, the main talking points, according to analysts, are the developments surrounding BES12 and other enterprise markets, but it is still too early to comment on the performance of these initiatives.

Based on the company’s underlying net assets, analysts believe the “risk-to-reward at the current price is attractive.”

Cormark Securities have reiterated their Buy rating on BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) with a price target of $11.50. The analysts have assigned a value of $4 billion to the company’s NAV including patents, $1 billion for the BBM messaging, MDM and potential IOT platforms while $500 million to $1 billion has been included for potential tax refunds.

Transitional quarter for BlackBerry

Evercore analysts Mark McKechnie and Zachary Amsel believe the first quarter was a transitional quarter ahead of the launch of BES12 in November. In the first quarter, the analysts expect BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) to burn $150 million cash, but that the firm will be cash richer by $100 million (including the tax credit) for the full year. Evercore analysts expect the company to post a loss of 19 cents on revenues of $1.1 billion. Revenue from handsets are expected at $506 million on 2.2 million units sold at an average price $230. Services are expected to contribute $496 million, while software and other revenues are expected at $75 million.