Bernstein Upgrades Blackberry, Sees Limited Upside to Stock Price
Bernstein Research analyst Pierre Ferragu upgraded BlackBerry Limited (NASDAQ: BBRY) from Underperform to Market Perform and raised the price target from $4.50 to $5.50.
Ferragu noted that there is limited room for further stock decline as the current price reflects worst-case scenario valuation and liquidation cost of approximately $1.5 million. The analyst added that Blackberry's best option is to sell the company, attempt to eliminate handset business, and invest in an open "mobile gateway" for corporate clients.
Bernstein commented that there is no rush to cover short positions as FY3Q results are expected to fall below expectations and doesn't expect a "reassuring strategic announcement."
Blackberry closed at $6.08 on Friday. Shares of Blackberry hit $6.29 Monday, a 3.45% increase.
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