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UPDATE: CIBC World Markets Downgrades BlackBerry on Long Road to Turnaround

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In a report published Tuesday, CIBC World Markets analyst Todd Coupland downgraded the rating on BlackBerry (NASDAQ: BBRY) from Sector Outperform to Sector Underperform, and lowered the price target from $12.00 to $5.00.

In the report, CIBC World Markets noted, “BB has cashed up its balance sheet with a $1B convertible led by Fairfax ($250MM). Cash stands at $3.6B less ~$500MM for its restructuring of opex by 50%. Our view is BB's time to turnaround will be long, with success uncertain. We step aside, downgrading to SU from SO-S, as of Nov. 4. BB's balance sheet is now in good shape. Pro-forma cash (convert & restructuring) is $3.1B or ~$5/share. BB's survival was an issue for many enterprises who have watched the downward spiral. Today's cash up should alleviate the financial concerns, but competitive ones remain.”

BlackBerry closed on Monday at $6.50.

Posted-In: CIBC World Markets Todd CouplandAnalyst Color Downgrades Analyst Ratings

 

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