In a report published Monday, Canaccord Genuity analyst T. Michael Walkley reiterated a Sell rating and $8.00 price target on BlackBerry Ltd. BBRY.
In the report, Canaccord Genuity noted, “Consistent with our global surveys indicating very weak Z10, Q10, and Q5 sales along with sharply declining legacy BB7 sales, BlackBerry pre-announced August quarter sales of 3.7M BlackBerry units, $1.6B in revenue, and a non-GAAP loss of $0.47-0.51. These results were significantly below our Street-low estimates. Further, consistent with our prior sum-of-parts valuation that assigns no long-term value to BlackBerry's consumer business, management announced a significant restructuring eliminating roughly 4,500 positions and discontinuing consumer-focused BlackBerry products. BlackBerry will refocus the business towards only enterprise and professional consumers. However, given the growing BYOD trend, we view a healthy consumer smartphone business as paramount for a sustainably profitable enterprise franchise.”
BlackBerry Ltd. closed on Friday at $8.73.
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