Ray Of Light For BlackBerry Ltd (BBRY)? One Analyst Thinks So

BlackBerry Ltd BBRY

Could BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) live to see a brighter day? One analyst believes the Canadian tech giant will make a turnaround and improve in the near future.

BlackBerry could experience turn-around

Maynard Um, analyst for Wells Fargo, increased his estimate for BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s valuation range and revenue estimate for 2015. He also predicts by 2016, BlackBerry could see an improved cash flow after financial adjustments are made. The company’s new chief executive officer John Chen has already made some significant changes such as wiping out the old guard in management ranks. He also created deals with suppliers to create cheaper phone models and put more focus on the tech giant’s enterprise customers.

The rise of Apple and Samsung was concurrent with the huge downfall for BlackBerry. While the iPhone set the standard for smartphones, BlackBerry failed to hold their own in a market that prizes strong innovation. Although Samsung was able to win some of that market for themselves, most other tech companies failed to do the same. For some companies, namely BlackBerry, the market only seemed to pummel them further into the ground. At this point, it seems almost impossible for the company formerly known as Research In Motion to get it together. But Um believes brighter days are just around the corner.

BlackBerry needs to shift their focus to business

He expects fiscal year 2016 to be the big turnaround point for BlackBerry. CNET elaborated, “At that point, the company will have reduced its need for working capital as it shifts away from the hardware business and should lower its operating expense from the reduced need to market to consumers. Um noted that royalty payments that BlackBerry has had to make will end in November, saving the company an estimated $200 million.”

Around that time, BlackBerry should also have a new sales force that will focus on business and government clients who prize security. He also mentioned that BlackBerry needs to solidify pricing plans for their new models.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)



About the Author

Anna Peel
Anna Peel is a professional writer. In the past four years, she has written for many websites including BSC Kids, Wasabi Media Group, Boomtron, and many others. She currently live in Savannah, Georgia and occasionally blogs about fashion during her free time.

11 Comments on "Ray Of Light For BlackBerry Ltd (BBRY)? One Analyst Thinks So"

  1. I am not say at all that Blackberry is terrible, it just not good enough to spark change. its only comparable to its rivals. FOr Blackberry to make it they need a blow your socks off hardware and software device.

  2. the problem with physical keyboards is it takes up valuable screen space real estate.

  3. Be different. Try a new platform. No phone is better than another, but there are subtle differences that may enhance your experience on another platform. I find BlackBerry OS 10 to have a rhythm and rhyme kinda flow over Android. It’ll take a day or two to get used to it, but you’ll have a hard time going back to anything else after that. Android seems choppy, as if you have to stop and go rather than fluctuating speed as you move along between apps. Hard to explain to those who haven’t used the new BlackBerry platform.

  4. Show me a good physical keyboard phone. Just because of that BlackBerry will survive. There’s nothing out there other than the BlackBerry Q10 for those of us who peck away emails on our phones. And even without the Android apps, there’s still more apps than I know what to do with în BlackBerry World. Now there’s the Android Market too for those who’ve upgraded to OS 10.2.

  5. When you look at market share. Other than Apple and Samsung most companies are having a hard time selling their smartphones. BlackBerry’s 3 to 5% market share is actually pretty good when compared with the rest.

  6. Dave Dave Dave Dave!!!!! We are saying neither of those products are dumb just your thoughts are.

  7. Why are you saying Android is dumb? And is Apple just as dumb??

  8. Actually no one can match their security just yet. Samsung kind of failed with the Knox.
    Technology is not reserved for Blackberry but it is built on it, something Android may or may not be able to do.

  9. BJ at one time yes Blackberry was noted for security. but sorry to say all rival possess the same level of it nowadays. What makes you think that, that technology is only reserved for Blackberry? sheesh.

  10. How could anyone NOT prize security?

  11. mkay

Leave a comment

Your email address will not be published.