Wells Fargo: Time For BlackBerry To 'Test The Waters'

Maynard Um of Wells Fargo believes that

may be on its way towards a successful turnaround. "The true test to a turnaround, in our opinion, starts now with the BES 12 release," Um wrote in a note to clients. The analyst adds that BlackBerry has answered all the questions related to distribution and pricing. "Boat built, oars ready, time to test the waters." According to Um, there is a market for BlackBerry's recently introduced products, including regulated industries, although the sizing of the market may be difficult to size up. The analyst adds that enterprises have typically embraced new products and technologies with small pilots and on some scales. With that said, Um is unsure if BlackBerry will show investors an acceptable software revenue run rate over the next two to three quarters. Um does add that BlackBerry's management remains confident of achieving cash flow break-even by the end of fiscal 2015. Shares are Market Weight rated with a price valuation range of $9.50 to $10.50. Shares of BlackBerry were down 4.6 percent at $11.50 on Thursday afternoon.