Wells Fargo: BlackBerry Showing 'Some Signs of Life'

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Analysts at Wells Fargo reacted to BlackBerry Ltd BBRY's earnings report, saying that the quarterly performance demonstrated "some signs of life." However, the analysts maintained a cautious outlook, rating the stock at Market Perform and showing skepticism over whether the company will be able to achieve its $500 million Software revenue target. The most "critical" factor moving forward, according to the analysts, will be this revenue growth.

Alongside the Market Perform rating, Wells Fargo lowered its 2016 revenue and EPS estimates from $3.13 billion and a loss of $0.03 per share to $2.84 billion and a loss of $0.07. The lower estimates, Wells Fargo said, are the result of lower hardware and BBM revenue, among other factors.

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Wells Fargo said it still sees the potential for "strategic alternatives" – restructuring, divestitures and a multi-platform strategy among them – to prop the stock. However, with a "potential sale of the company less likely in the near-term," the analysts peg full valuation at $9.50 to $10.50.

Shares of BlackBerry closed at $9.43 on Friday.

Posted In: ReiterationAnalyst RatingsWells Fargo
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