BlackBerry Price Target Just Cranked To $11 At Cowen
In a report published Thursday, Cowen and Company analysts maintained a Market Perform rating on BlackBerry Ltd (NASDAQ: BBRY), while raising the price target from $10 to $11 after investor meetings with company CFO James Yersh.
Blackberry's ongoing transition from being a hardware-centric OEM to an organization that is software-centric, cross platform enterprise mobility and security player is expected to prove fruitful over the long-term.
In the report and Company noted, "…the company's financial stability is providing management with greater flexibility around potential acquisitions that could advance its core security and/or IoT strategies - both in F2016 and longer-term. Relative to IoT, we believe the company is executing to a compelling strategy and vision that if successful could become a substantial long-term revenue driver as the market blossoms."
BlackBerry holds a leading position in IoT and is poised to leverage its global APN footprint. The company's future software revenues are likely to be driven by its technology licensing efforts.
"Management is still evaluating the best paths to a responsible licensing program, but believes both inbound and outbound opportunities can contribute to its $600MM Software target in FH2:16," the analysts added.
The company's hardware portfolio is in transition with newer devices like Passport, Classic and Leap taking the place of legacy products. "We expect the multi-quarter transition to fewer units/higher ASPs can fuel a similar Y/Y revenue contribution through the first three quarters of F2016, with the recent launch of T-Mobile an incremental positive for FQ2:16," the analysts wrote.
Latest Ratings for BBRY
|Sep 2016||Morgan Stanley||Maintains||Equal-Weight|
|Sep 2016||Credit Suisse||Maintains||Underperform|
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