Wells Fargo Securities analyst Maynard Um released a note evaluating BlackBerry (NASDAQ: BBRY) that maintained its Market Perform rating and gave a valuation range of $9.50-$10.50.
This note was released in relation to the recent earnings report released by MobileIron (NASDAQ: MOBL) on which management indicated its high competitive win rate and believed it gained share.
These claims by MobileIron are in contrast to BlackBerry’s comments that the company's last earnings report that stated “10% of licenses traded in under its EZPass program (or roughly 120,00) were from competitive MDM platforms, most notably, Good Technology and MobileIron.” Um believes that these claims to competitive wins will cause share price volatility and overshadow the real underlying dynamic.
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Um states, “BlackBerry faces several risks including services business model transition, uncertain BB10 demand, lack of strong ecosystem and potential enterprise market share loss, among others.” He does acknowledge, however, that there is a market for BlackBerry’s solutions, although the exact size is questionable.
Um believes that BlackBerry will likely look at other strategic alternatives to strengthen the company. Upside risk could result from potential strategic actions.
Shares of BlackBerry were trading down about 1.5 percent at $9.56 in Thursday's pre-market.
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