Bustling Stock in Focus: BlackBerry Limited (NASDAQ:BBRY)

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The Company trades under the ticker symbols "BB" on the Toronto Stock Exchange and "BBRY" on the NASDAQ. Morgan Stanley Maintains the stock to Equal-Weight on 9/29/16 by stationing a price target of $7.

On Friday, BlackBerry reported financial results for the fourth quarter and fiscal year ended February 28, 2017. Nonetheless, the analyst believes "confusion remains" with regards to the company's operational revamp throughout the last several quarters.

If BlackBerry can stay on track, RBC believes that the company can bring in $968 million in revenue by 2019, nearly double 2016's $527 million. Gross margin jumped to 60.1% in the quarter from 43.3% a year ago. R&D expense declined by 47% from $107 million to $57 million. The U.S. government recently validated BlackBerry's security solutions by granting the company FedRAMP and Authority to Operate certificates. THe company entered into a long-term software licensing agreement with Optiemus Infracom Ltd in order to design, manufacture, sell and support BBRY-branded mobile devices. The firm's other software-related businesses also gained some traction. Chen had indicated that if the company's handset division did not return to profitability, the smartphone maker will start focusing on being just a software company. Royal Bank of Canada reiterated a "hold" rating and issued a $7.50 target price on shares of BlackBerry in a report on Friday, March 24th. At the Mobile World Congress this year, "BlackBerry KEYone" was launched by TCL Corporation.

Chen said that in the quarter, the company continued to grow its mix of software and services revenue. BlackBerry reported a positive free cash flow of $16 million while operating cash flows came in at $14 million. "With our focus and shift towards a software model, we have consolidated our software business to enable tighter product and go-to-market integration". The stock settled into a range in the afternoon and closed up by 0.80 at $7.75 on the highest volume of the year. The company has a 1 Year high price target of $7.92.

This is indeed a strong comeback for a company that was losing its direction in the age of touchscreen smartphones.

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Blackberry announced that it has completed the transition from a hardware to a full software and services company.

Blackberry's software and services segment made up to $193 million of that sum with quarterly device revenue amounting to $55 million. QNX is central to the company's efforts in the self-driving vehicle industry.

BlackBerry's recent developments could be the two catalysts the company needed to break out of its recent slump.

The Ford deal was to expand BlackBerry's use of its QNX secure operating system as the auto maker focuses on developing its automated vehicles. BlackBerry has so far committed to licensing deals with third-party manufacturers, which does give them the opportunity to focus more on their software and unique features. BlackBerry is also deepened its relationship with Ford Motor, as it transferred 400 employees to work on the auto behemoth's connected vehicle initiatives. A few more good quarters could see BBRY stock touching new highs.

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