Canaccord Maintains Cautious Outlook On BlackBerry Following Enterprise Event

In a research note released today, Canaccord analyst Michael Walkley maintained a Hold rating on shares of BlackBerry (NASDAQ:BBRY) with a $10 price target, after he attended the company’s Enterprise Event in San Francisco.

Walkley wrote, “The company launched its BES12 platform that will drive its next-generation Enterprise Mobility Management (EMM) offering and highlighted its value added services (VAS) solutions. The company also elaborated on its monetization strategies for these EMM and VAS offerings, as management hopes they will stem the long-term decline in Services revenue and announced partnerships to drive its distribution strategy.”

The analyst continued, “With BES12 finally introduced, we believe BlackBerry faces the challenging task of selling not just EMM subscriptions but must also upsell substantial amounts of VAS to potential new subscribers in a highly competitive enterprise mobility market to offset declining services revenue. Given these trends and with BlackBerry now anticipating a faster decline in F’16 Services revenue to $850M versus our $1.05B estimate, we maintain our cautious outlook for returning to sustained profits.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a total average return of 24.7% and a 72.6% success rate. Walkley has a 23.9% average return when recommending BBRY, and is ranked #3 out of 3405 analysts.





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