Blackberry upgraded by Morgan Stanley on stock value prospects
Shares in BlackBerry jumped over 6% in early morning trading in New York on Tuesday, after the phone maker was upgraded by analysts at Morgan Stanley.
Citing cost-cutting plans and cash flexibility, the brokerage indicated it expects the stock value to increase in the short-term future and lifted its rating on the stock from ‘underweight’ to ‘equal weight’.
However, the bank retained its price target of $7 claiming there was yet no evidence of a "fundamental business turnaround."
In a note to clients on Tuesday, Morgan Stanley said it estimates BlackBerry’s cash balance to be worth approximately between $3.50 and $3.75 a share, more than half its current share price value of $7.69.
The Canada-based firm, which has moved towards software and shifted away from its legacy smartphone business in the wake of increasing competitions from Apple and Samsung, has missed quarterly sales expectations in 19 of the last 22 quarters since the end of 2010.
BlackBerry shares were up 5.63% to $7.69 at 1655 BST on Tuesday.