Stock analysts at Citigroup Inc. assumed coverage on shares of BlackBerry (NASDAQ:BBRY) in a report issued on Tuesday, TheFlyOnTheWall.com reports. The firm set a “sell” rating and a $4.00 price target on the stock. Citigroup Inc.’s price target would indicate a potential downside of 33.00% from the stock’s previous close.
The analysts wrote, “We are assuming coverage of Blackberry with a Sell/High Risk rating and a sum-of-parts price target of $4/share as we believe that Blackberry remains challenged as a going concern and continues to be worth more in a breakup scenario, a strategy that current management does not appear to be following. Oddly enough, we calculate that simply shutting down the business is also not likely to add value as we estimate complete separation/shut-down costs could approach $1B in restructuring while purchase commitments add another $2.9B, let alone some $200M for operating leases, which in total exceeds the company’s cash balance of $2.6B as of the August quarter plus the recent $1.0B Fairfax investment via convertible debt, and may require substantial re-negotiating of agreements with existing manufacturers.”
BlackBerry (NASDAQ:BBRY) traded up 1.42% on Tuesday, hitting $6.055. The stock had a trading volume of 21,598,416 shares. BlackBerry has a 1-year low of $5.44 and a 1-year high of $18.32. The stock has a 50-day moving average of $6.7 and a 200-day moving average of $9.52. The company’s market cap is $3.116 billion. BlackBerry also saw unusually large options trading on Monday. Stock traders purchased 39,962 call options on the stock. This is an increase of 107% compared to the average volume of 19,329 call options.
BlackBerry (NASDAQ:BBRY) last issued its quarterly earnings data on Friday, September 27th. The company reported ($0.47) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.15) by $0.32. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.63 billion. The company’s revenue for the quarter was down 45.0% on a year-over-year basis. On average, analysts predict that BlackBerry will post $-1.34 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Wells Fargo & Co. reiterated a “market perform” rating on shares of BlackBerry in a research note to investors on Friday, December 6th. Separately, analysts at UBS AG downgraded shares of BlackBerry from a “neutral” rating to an “underperform” rating in a research note to investors on Friday, November 15th. They now have a $5.50 price target on the stock, down previously from $7.00. Finally, analysts at Macquarie downgraded shares of BlackBerry from a “neutral” rating to an “underperform” rating in a research note to investors on Friday, November 15th. Fifteen research analysts have rated the stock with a sell rating, twenty-three have given a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $7.55.
Research In Motion Limited is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market.
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