BlackBerry Ltd (BBRY) Reiterated With Neutral Rating By Nomura

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BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) recently released an update on the company’s mobile security offering, explaining the details of a security acquisition Secusmart, whose anti-eavesdropping services are availed by the German government. Despite the update, Nomura analysts Stuart Jeffrey and Woo Jin Ho are not moved by the changes and made no changes in the price target.

More clarifications for security on other platforms

BlackBerry claims dominance in the security arena, which is promising considering the company’s vertically integrated offering, believes analysts. However, BlackBerry should clarify if this security will be available for the Android, iOS and Windows as well. Analysts hope to get more details with the release of BlackBerry Enterprise 12.

However, analysts (in a report dated 29 July 2014) believe that management at BlackBerry is making considerable efforts to make a case for the company by explaining why it should be considered as a key player in the enterprise mobility market other than its traditional device and service offering.

More details needed on QNX from BlackBerry

According to BlackBerry QNX holds 50% share of model year 2016 cars infotainment systems, which analysts feel is interesting. But the management did not clarify that whether the company has 50% share of infotainment system or just the US cars and so on. Apart from remaining silent on the QNX business model, the company has not revealed the nature of revenue per vehicle it is expecting to earn.

Analysts “see a material increase in news flow on this subject within 12 months, however, given that many if not most model year 2016 announcements should have been made by mid-2015.”

BES12 awaited

Analysts say that BlackBerry Passport is an extraordinary looking phone with a wide physical keypad packed within three rows below a wide square touchscreen, which can overshadow two iPhone screens side by side. Passport can be distinguished from the phablet on the basis of screen. The report says that even though the device cannot be imagined to be a huge hit, but sure can be distinguished from the crowd.

Details will be more precise in November with the release of BES 12, and analysts at Nomura see the update from BlackBerry as a reminder of the company’s mobile assets helping it to remain visible till the release of BES 12.

Nomura analysts reiterate Neutral rating and $10 price target on BlackBerry, saying “Until BES 12 is announced, it remains hard to judge BlackBerry’s likely chance of success.”

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About the Author

Aman Jain
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 [email protected]

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