Imperial boosts BlackBerry price target, but wants better entry

|About: BlackBerry Ltd. (BB)|By:, SA News Editor

BlackBerry's (BBRY +0.5%) move away from hardware development toward software/services is a key strategic shift that could bring focus but also some key uncertainties, Imperial Capital says as it bumps its price target.

The firm maintained an In-Line rating and raised its price target to $8.50 from $7 -- implying just 6.4% upside, but they say the shares have balanced risk/reward and "we would seek a more attractive entry point."

“BBRY’s decision to cease internal hardware development and outsource to partners represents a key strategic shift which will transition the company into a focused software and services vendor with improved margin and cash flow profile,” analyst Michael Kim says, but he notes considerable uncertainty around licensing deals as well as end-user demand for new devices, and steady-state royalty rates.

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