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BMO Capital Markets Previews BlackBerry, Says Key To Success Is Software

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What Does A Software-Only BlackBerry Look Like?

BMO Capital Markets issued a report on BlackBerry Ltd (NASDAQ: BBRY) ahead of its earnings call next week. BMO Capital Markets rates BlackBerry as Market Perform with a $10 price target.

Analyst Tim Long wrote, "We believe there may be downside to our hardware revenue estimates caused by Classic shipments in the U.S. being pushed out into the May quarter on carrier availability and sell-through accounting....if management can deliver on a few reasonable assumptions, it can reach our conservative software revenue expectations...We'll be looking for management to provide some metrics on the initial BES12 rollout, which should have some indication of software revenue trajectory for FY2016."

Related Link: Tech Analyst Warns That BlackBerry Has 'Upper Boundary' Of $10

Analysts believe that software traction is more important for BlackBerry's stock than sales of its mobile devices. Software revenue is expected to increase as the BES12 monetization begins to take place. BlackBerry recently released its new phone called the Classic, which saw limited availability with key U.S. carriers that could lead to disappointing sales this quarter.

Shares of BlackBerry closed Thursday at $9.70.

Latest Ratings for BBRY

DateFirmActionFromTo
Sep 2016Goldman SachsMaintainsSell
Sep 2016Credit SuisseMaintainsUnderperform
Sep 2016Morgan StanleyMaintainsEqual-Weight

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Posted-In: BMO Capital Markets Tim LongAnalyst Color Analyst Ratings

 

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