BlackBerry (BBRY) Price Target to $8 at BMO Capital Following 3Q Results

BMO Capital reiterated a Market Perform rating on BlackBerry (NASDAQ: BBRY), and raised the price target to $8.00 (from $7.00), following the company's 3Q15 results. Blackberry is poised to reach management’s $500 million target for FY2016, but with a lot of help. excluding the $120 million of onetime IPR and four acquisitions, BMO's models full-year software revenues of just $300 million for BES, messaging, and QNX. Y2016/FY2017 EPS estimates go from ($0.38)/($0.30) to ($0.31)/($0.31).

Analyst Tim Long commented, "November-quarter results were mostly positive. Revenues were well above our estimates, owing in part to $53 million of nonrecurring IPR revenues. Even without the IPR, software was a touch stronger than expected, as were phone sales. The upside in these segments was partly offset by lower service access fees. Gross margin was a little better on mix, and resulting EPS was better than we had modeled. Our FY2016/FY2017 EPS estimates go from ($0.38)/($0.30) to ($0.31)/($0.31)."

For an analyst ratings summary and ratings history on BlackBerry click here. For more ratings news on BlackBerry click here.

Shares of BlackBerry closed at $8.61 yesterday.

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