BlackBerry Ltd. Price Target Updated By Goldman Sachs

Updated on

Canadian listed BlackBerry price target has been updated by Goldman Sachs analysts Simona Jankowski, Doug Clark and Balaji Krishnamurthy in a report dated July 7, 2014, to reflect the 12 month forward USD CAD rate of 1.07, which was earlier assumed at 1. Now, the price target moves to C$11 from C$10 earlier.

No change in rating

It must be noted that the target has been changed for the Canadian listed BB.TO while for BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) remains unchanged at US$10.

Goldman Sachs note that any merger and acquisitions, declining market share and declining services are risks to the price target they have set. The 12-month price target is based on the fundamental sum-of-the-parts valuation, which carries 70% weight, while the remaining 30% is for M&A component. Analysts have not changed the neutral rating on BlackBerry Ltd. (NASDAQ:BBRY) (TSE:BB).

BlackBerry fighting its way back

The Canadian smartphone maker was lingering near the brink of failure, but it has found its way back and is hard to be dismissed as a dead stock. CEO John Chen is primarily the strength behind the company, who is not shy of taking the most ardent steps. Amidst all the challenges faced by BlackBerry, the stock is delivering value to the investors. In the current year, the shares outdid peers, and have already gained 50% this year and are one of the best performers in its sectors.

A look at other magnates reveals that Apple has gained just 20% this year, whereas Google had meager 5% rebound in the stocks. However, the potential of growth in a struggling stock is always higher compared to already trading high one.

BlackBerry is narrowing its cost, but the investors like the approach. Apart from slashing cost, the Canadian smartphone maker has tried some tricks up its sleeves like positioning its BlackBerry messenger app as the WhatsApp for the enterprise market. Also, BB10 mobile operating system features were updated and tweaked to make it more adaptable. BlackBerry is prepping itself to gain share in the handset market. Most decisively, BlackBerry has refrained itself from making any wrong decision this year.

It is still unknown that how relevant BlackBerry will be in the future, as it is way behind in the smartphone market, but it is known for sure that the Canadian firm will leave no stone unturn to regain the lost glory.

Leave a Comment

Signup to ValueWalk!

Get the latest posts on what's happening in the hedge fund and investing world sent straight to your inbox! 
This is information you won't get anywhere else!