- The market has swung too optimistic on BlackBerry (BBRY), says analyst James Faucette, cutting the stock to Underweight with a $7 price target.
- "We believe that the market has largely valued the company based on the assumption that BlackBerry will generate an incremental $250M in software revenue and an incremental $100M in messaging revenue during FY16, consistent with the targets set out by CEO John Chen (from roughly $0 today)."
- "We estimate this implies that BBRY will not only successfully retain roughly its entire existing enterprise subscriber base—plus more—it will also convince that subscriber base to increase ~3x how much it is paying BBRY today.”
- Shares -4.7% premarket