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phil
March 31st, 2014 at 12:28 pm
BlackBerry adds to losses; two downgrades overshadow upgrade
10:14 AM ET · BBRY
• While Needham has upgraded BlackBerry (BBRY -4.3%) to Hold, Credit Suisse and Evercore have respectively downgraded to Underperform and Underweight. Shares are now down 11% since Friday morning’s FQ4 report, as top-line concerns take precedence over a big EPS beat.
• CS is worried about free cash flow weakness and slumping services revenue. Needham, meanwhile, declares John Chen has “brought adult supervision to the company,” and is optimistic about installed base upgrades following the launch of the company’s Q20/Classic QWERTY phone this year.
• Canaccord (Hold) has upped its PT to $8 from $6. It’s concerned about limited near-term sales visibility, but also expects “gradually improving trends following the BES12 launch in November.”
• Goldman (Neutral) has cut its PT to $8.80 from $9.50. It views Chen’s goal of achieving breakeven cash flow by the end of FY15 achievable, but is “more skeptical on BlackBerry’s ability to return to profitability in FY16.”
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