WELLS FARGO OUTPERFORM ON BBRY . SAYS WILL BEAT STREET. LINK
STREET iNSIDER 3/21/13
Blackberry (BBRY) Gross Margin Could Surprise to Upside, Says Analyst
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Analyst Maynard Um of Wells Fargo thinks the Street is underestimating gross margin at turnaround story BlackBerry (NASDAQ: BBRY).
"Key to our blended gross margin forecast of 32% is higher mix of BB10, which we estimate at 27% gross margin, and lower mix of BB7, which we estimate at (10%) gross margin. While we do not anticipate guidance, we expect further mix shift to BB10 to benefit gross margin in the next fiscal quarter," said the analyst.
Lu thinks this could translate into potential upside to Street revenue and EPS estimates. Blackberry reports earnings on March 28th. Estimates call for revenue of $2.84 billion and EPS of ($0.29). Wells Fargo sees revenue of $2.99 billion and a loss of only $0.23.
Wells Fargo has an Outperform rating on BlackBerry with a price target of $19 to $20.