Here’s Why You Shouldn’t Focus on Blackberry’s Results and Still Go Long

Like hedge funds, analysts are not so bullish on Blackberry and most have set a ‘Hold’ rating on the stock, including Wells Fargo, Morgan Stanley and RBC Capital and Canaccord. Overall, analysts have a consensus price target of $8.74 per share, or 30% above Blackberry’s current price.

With the stock trading around $6.52 a share, Blackberry is trading close to its book value of $6.64 per share. The company has an attractive patent portfolio and has $2.1 billion of net cash on its balance sheet. Blackberry’s transformation to a software and services company from a hardware smartphone manufacturer has certainly been rough, but the management team has made significant progress so far. Like analysts and hedge funds, we feel that shares currently trade at a compelling valuation for long term investors.

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