BlackBerry (BBRY)’s Business-focused Phone Exceed Expectations, CEO Chen Happy About Inventory Shortage

Shares of BlackBerry Ltd (BBRY) are up more than 5 percent on Monday in premarket trading after the company’s CEO John Chen told an MIT Enterprise Forum event in Hong Kong [via Bloomberg] that Blackberry’s newest smartphone, Passport, has exceeded expectations. Shortages of the business-focused phone, which according to the company is profitable at the current price points of $599, show that efforts to turn around the unprofitable company are taking hold, Chen said, adding he was “glad to have inventory issues” because “it shows that people want the phone”.

Passport is the first major new device released globally since Chen assumed leadership of the struggling company last November.

On valuation measures, BlackBerry Limited shares have a PEG and price-to-sales ratio of (0.46) and 1.19, respectively. EPS is ($9.66). Currently there are no analysts that rate BBRY a ‘Buy’, 24 rate it a ‘Hold’, and 3 rate it a ‘Sell’. BBRY has a median Wall Street price target of $10.00 with a high target of $12.00.

In the past 52 weeks, shares of Waterloo, Canada-based tech company have traded between a low of $5.44 and a high of $11.65 and are now at $10.00. Shares are up 15.73% year-over-year and 27.55% year-to-date.

The chart below shows where the stock has traded over the last year, with the 50-day and 200-day moving averages included.

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