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BlackBerry +3.3% on TD Securities upgrade

Dec. 22, 2014 9:48 AM ETBlackBerry Limited (BB) Stock, BB:CA StockBBBy: Eric Jhonsa, SA News Editor49 Comments
  • "BlackBerry is effectively transitioning to a cross-platform software/services company. In this context, the device business should not be banked on to generate profit," says TD Securities, upgrading BlackBerry (BBRY) to Buy after the company reported mixed FQ3 results, a 56% Y/Y drop in end-user phone sales, and a ~100% Q/Q increase in BES10 licenses.
  • TD sees BlackBerry shipping 8.9M phones in FY16 (ends Feb. '16) - less than the 10M the company has said it needs to turn a profit on hardware - at a 15% gross margin. ~75% of FY16 gross profit is expected to come from software and legacy services.
  • BlackBerry has forecast its software revenue will double in FY16, and that its services revenue will fall by 50%. Shares are now above where they traded prior to the FQ3 report.
  • Also: BlackBerry has disclosed it's partnering with Boeing to "provide a secure mobile solution for Android devices" that leverages BES12. The solution is tied to Boeing's ultra-secure Black phone (meant for U.S. defense/security clients).
  • BlackBerry earnings coverage

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