In a report published Monday, Oppenheimer’s Ittai Kidron upgraded the rating on BlackBerry Ltd (BBRY) from “Underperform” to “Market Perform”, writing that the move was a valuation call.
In the report, Kidron notes that the “hard reality” of the Canadian smartphone maker trying to recapture share in a market that has obviously shifted toward Samsung with Google’s (GOOGL) Android and Apple’s (AAPL) iOS operating platform “has sunk in with investors” and the stock is easier to justify near the $7 level.[via Barron’s Tiernan Ray] “We believe reality has sunk in with investors who are now more negativity biased for lost momentum with carriers, a services sales gap and unknown turnaround time-frame. But with this now better reflected in the stock, it’s difficult to see incremental NT data that could significantly worsen sentiment.”
The note appears to have moved the street to the bullish side this afternoon, leading Blackberry shares to a gain of almost 4 percent to $7.53. The company’s stock is down nearly 50% from the 52-week-high of $16.59 it reached on April 30, 2013.
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