Accounting Rules Could Drive Gross Margins for BlackBerry

On Tuesday, Wells Fargo released some neutral comments on BlackBerry

. Analyst Maynard Um believes accounting methods will “drive gross margins up (combined with lower hardware mix).” Accounting rules “will allow recognition of the perpetual license upfront (vs amortized over a year),” Maynard said. “Combined with our expectation for a lower opex announcement and cash flow tailwinds, this could drive FY2015 EPS,” the Wells Fargo analyst said. Maynard remains cautious because of:

The analyst has a Market Weight rating on the stock. Shares of BlackBerry 0.27 percent to $9.40 in pre-market trading. Shares are up 26 percent year to date.