Can BlackBerry (BB) turn into the stock market's Liverpool FC? For anyone following the English Premier League, after 30 barren years and one global pandemic, soccer giants Liverpool at last clinched the premier league title remaining week. could the maker of the once iconic smartphone be in a position to also rekindle former glories?
on account that leading the handset market and peaking at an all-time excessive of $147.fifty five per share – all the approach returned in June 2008 – the panorama has irrevocably modified. BlackBerry has modified direction when you consider that and is now ostensibly a safety utility specialist. the percentage cost has modified direction too, down now in penny stock territory, with a further disappointing year in tow – shares have dropped via 25% in 2020.
the previous glories may be challenging to duplicate, and youngsters last week's Q1F2021 profits file become a step in the appropriate direction, the consequences have been nonetheless a blended bag.
within the quarter, BlackBerry's earnings declined year-over-yr by means of 20% to $214 million, lower than the street's demand $216.eight million. The enterprise managed a beat on the base line, with Non-GAAP EPS of $0.02 beating consensus with the aid of $0.04.
As anticipated, the quarter was marred with the aid of the ruinous impact of the coronavirus. Auto market macro headwinds translated into weak revenue for the enterprise's QNX auto utility platform. however ESS (enterprise utility and functions) managed to offset QNX weakness due the faraway working atmosphere. BlackBerry has referred to the auto and other embedded sectors are witnessing enhancing trends and expect earnings for QNX to sel ect up because the 12 months progresses.
So does Canaccord's Michael Walkley. youngsters the 5-star analyst anticipates "steady improvement throughout the year," there is still much to be performed to alternate universal sentiment.
Walkley observed, "while management has created a cogent lengthy-time period approach and the shares are probably compelling for longer-term-oriented buyers, we anticipate extra proof in execution on the new product roadmap, evidence go-promoting opportunities emerge, stabilizing to transforming into ESS revenue, recovering QNX revenue, and the knowledge for upside to our estimates earlier than fitting extra positive on the shares."
All in all, Walkley reiterated a dangle on BlackBerry shares, together with a $6 cost target. The implication for buyers? Upside of 23%. (to monitor Walkley's track list, click on here)
The rest of the street backs up Walkley's call. All 9 analysts tracked over the ultimate 3 months advocate a hold. With a standard price target of $5.38, the analysts forecast upside of 10% over the subsequent 365 days. (See Blackberry stock evaluation on TipRanks)
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