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Canada Real Estate Sale Will Allow BlackBerry to Focus on Core Fundamentals, Wells Fargo Says

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Following an announcement that Blackberry (NASDAQ: BBRY) will sell the majority of its real estate holdings in Canada, Wells Fargo released some comments on the news.

Analyst Maynard Um calculated that the proceeds from the sale will be in the $600-700 million range “based on then-current real estate prices, assuming a sale of all real estate assets.”

The sale is a “clear indication of the initial priorities.” Um believes “the quick actions of the shedding of the noncore assets should results in fewer distractions and allow greater focus on core fundamentals, which should start to come into the spotlight with a growing sales force foundation and more-defined pricing strategy.”

Um has a Market Weight rating on the stock and a valuation range of $9.50 to $10.50.

Shares of BlackBerry are down 1.5 percent to $9.29 in Friday's regular session, after hitting a high of $9.70 in pre-market trading.

Latest Ratings for BBRY

DateFirmActionFromTo
Jul 2015Morgan StanleyUpgradesUnderweightEqual-weight
Jul 2015MacquarieMaintainsUnderperform
Jun 2015Imperial CapitalMaintainsIn-line

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