As the earnings season winds down, analysts are now hailing some of the last reporters, which are BlackBerry Ltd (NASDAQ:BBRY) and Micron Technology, Inc. (NASDAQ:MU). Here’s a quick roundup of today’s brokerage reports on BBRY and MU.
BlackBerry shares fell 7.5% on Friday after the company reported lower than expected Q4/F’16 revenue due to lower than expected hardware revenue, while software and SAF revenue were in line with expectations.
In reaction, Wells Fargo analyst Maynard Um reiterated a Market Perform rating on the stock, with a valuation range between $7.25 to $8.00.
Um said, “Non-GAAP FQ4 revenues of $487MM missed our/Street forecasts of $571MM/$566MM as Hardware revenues were below expectations (unclear if unit sell-in was weak or if there was a change in accounting to sell-through). Specifically, Hardware and other revenues were $190MM versus our/Street’s $280MM/$283MM. Software sales of $156MM were in line with our forecasts of $150MM (Street: $154MM) as were Service revenues of $141MM versus our/Street forecasts of $141MM. Non-GAAP gross margin of 48.7% was above our 47.6% (Street: 40.6%) while Non-GAAP operating loss of ($36MM) was below our ($25.6MM), helped by taxes which we calculate was a $0.03 benefit. NonGAAP EPS was -$0.03 and above both our/Street estimate of -$0.06/-$0.10. Ending cash and investments of $2.6B versus our $2.8B estimate.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Maynard Um has a yearly average return of 14% and a 62% success rate. Um has a -24.5% average return when recommending BBRY, and is ranked #152 out of 3775 analysts.
Out of the 20 analysts polled by TipRanks, 16 rate BlackBerry stock a Hold, while 4 rate the stock a Sell. With a return potential of 1.5%, the stock’s consensus target price stands at $7.58.
Micron Technology, Inc.
Morgan Stanley analyst Joseph Moore reiterated an Overweight rating on shares of Micron, with a price target of $18, after the company reported disappointing quarterly result and outlook, though, slightly better than Moore’s recently reduced estimates.
Moore noted, “Weak earnings, but better than at least our fears/published estimates. There was a company specific shortfall in mobile based on qualification problems, but overall both numbers and outlook were slightly better than our estimates, though below consensus. We continue to like risk/reward from here; while we do lower our bear case from $11 to $8, our base case and price target remain unchanged at $18.”
“We are positive on the stock given where it is trading. We don’t think the best way to predict Micron’s stock price moves is to be bullish when prices and earnings are good, and bearish when prices and earnings are bad, regardless of stock price,” the analyst added.
According to TipRanks.com, analyst Joseph Moore has a total average return of 7.5% and a 50.0% success rate. Moore has a 34.9% average return when recommending MU, and is ranked #551 out of 3775 analysts.
Out of the 35 analysts polled by TipRanks, 24 are bullish on Micron stock a Buy, 7 are neutral, and 4 are bearish on the stock. With a return potential of 55%, the stock’s consensus target price stands at $17.12.