Ahead of Earnings, BlackBerry Ltd Was Upgraded To ‘Buy’

Ahead of Earnings, BlackBerry Ltd Was Upgraded To ‘Buy’

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) continues to move forward with its turnaround, with shares closing up 2.98% on Wednesday at $8.29. BGC Financial upgraded their rating from Sell to Buy in a research note issued to investors on Wednesday. Also, the price target has been raised to $15 from $8, which represents an upside potential of 86.34% from the stock’s previous close.

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Rating from other analysts

Various analysts have come out with their recommendations on the Canadian firm recently. Morgan Stanley initiated coverage on BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) in a research note on Wednesday with a rating of Equal Weight on the stock. On the other hand, Cowan and Company reiterated a Neutral rating on the stock in a research report published on Wednesday. Separately, an analyst at Oppenheimer upgraded their rating from Underperform to Market perform in a research note published on Tuesday, May 6th. Nineteen analysts have given a Hold rating and eleven have a Sell rating on the stock. Three analysts have a Buy rating, whereas one has a Strong Buy rating. Presently, BlackBerry has a consensus rating of Hold and an average target price of $8.70

London Value Investor Conference 2022: Chris Hohn On Making Money And Saving The World

business activist 1653311320Chris Hohn the founder and manager of TCI Fund Management was the star speaker at this year's London Value Investor Conference, which took place on May 19th. The investor has earned himself a reputation for being one of the world's most successful hedge fund managers over the past few decades. TCI, which stands for The Read More

BlackBerry put a one year low of $5.44 and a one year high of $15.09. The stock has a 50-day moving average of $7.58 and a 200-day moving average of $8.21. The company’s market cap is currently $4.312 billion.

For the first fiscal quarter, the Canadian company posted GAAP earnings of $23 million, or 4 cents a share versus a  loss of $84 million, or 16 cents a share, last year. Revenue for the quarter came in at $966 million, which is a decline of 1% from the year ago period. Analysts expected a loss of 28 cents a share on revenues of $1.047 billion..

Opportunities for BlackBerry moving forward

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s new CEO John Chen, who came aboard last November, is working hard to get the company back on solid footing. Chen identified enhanced enterprise mobility management as a hot emerging market the company planned to focus on.

Enterprise Mobility has a huge potential. BlackBerry disclosed BBM Protected, the first component of its present eBBM suite for secure enterprise-class mobile messaging. With this kind of product, BlackBerry will enable access and productivity for mobile workers. Introducing machine-to-machine communication is only possible through robust server and network operating systems, according to Chen.

A three-year deal with EnStream to support cash transactions between banks and customers could also help to improve the stock price.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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