Morgan Stanley rates BlackBerry's shares as an "underperformer", says MDM market is mature

Morgan Stanley rates BlackBerry's shares as an
BlackBerry is not a favorite of the Wall Street analysts who cover the company. According to Bloomberg, 33 of them are covering the stock with only four of them putting a "Buy" rating on the company. Ten are suggesting that clients "Hold" the shares while ten are telling their clients to "Sell" the stock. Target prices over the next 12 months range from a low of $5 to a high of $14. The stock closed Friday at $9.80. Takeover rumors have propped up BlackBerry's value with Microsoft rumored to be prepping a $7 billion bid for the company. That would work out to a price of $13.23 a share.

U.S. brokerage house Morgan Stanley has recently studied the mobile security market and says that the market for mobile device management is a mature one. BlackBerry already has 50% of the MDM market, according to Morgan Stanley, and this rises to 75% on a dollar basis. While BlackBerry suggests that the ARPU for its BES service is $9 a month, Morgan Stanley's analysis suggests that the figure is actually closer to $8.

In addition, a survey of CIOs done by Morgan Stanley suggests that two-thirds of BlackBerry's enterprise customers own mostly legacy models, with many planning to purchase fewer new BlackBerry handsets going forward. The firm's analysts believe that a couple of things can help keep BlackBerry's enterprise business from heading south. New products and features could help pump up the BlackBerry Cloud Enterprise, which is part of the company's MDM services. It provides a link between a company's cloud messaging service and the BlackBerry handsets it uses. BlackBerry also can benefit from the recent monetization of BBM.

But overall, Morgan Stanley has rated the company's shares at "underperform," which in Wall Street lingo means that the stock will not do as well as the overall market. The securities house sees CEO John Chen looking to build new handsets by cutting expenses (meaning that you should continue to expect mid-range specs at best) and increasing the life cycle of its new models. On the software side, Morgan Stanley says that BlackBerry will look for new opportunities to create value. Overall, the analysts toiling for Morgan Stanley see BlackBerry dropping to $7, and that is assuming that the company doesn't start burning through the $3 billion in cash that it holds.

Thanks for the tip!

source: Bidnessetc.com

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52 Comments

1. Mxyzptlk unregistered

And here we go. *grabs popcorn*

4. Scott93274

Posts: 6033; Member since: Aug 06, 2013

No joke. :P

7. gaming64 unregistered

Cant wait for this fight to go full retard :P

8. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Shouldn't take long, one of the Patriot triplets is already talking crap.

14. meanestgenius

Posts: 22043; Member since: May 28, 2014

See comments #12 and 13.

19. Scott93274

Posts: 6033; Member since: Aug 06, 2013

You're putting way too much work into something you're not even getting paid for. lol.

22. meanestgenius

Posts: 22043; Member since: May 28, 2014

That can be said for you, as well as many others from all camps.

23. ARTE.8800.

Posts: 192; Member since: May 27, 2015

I can't believe Mxzy isn't trolling! Lol. How is that possible. Normally you shut him up.

26. Mxyzptlk unregistered

He doesn't shut me up. You're so insignificant that I forget who you are.

40. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

Mxy has decided to join the human race and behave like an adult. Pu**y will do that, you should try it. Or coc* if that's your thing.

24. ARTE.8800.

Posts: 192; Member since: May 27, 2015

Well Nicolas oliver and Mxzy isn't saying anything....

2. ThePATRIOToverlord

Posts: 50; Member since: May 29, 2015

blackberry is that sinking ship... John Chen needs to get off that ship asap and get himself a brand new beautiful Galaxy s6, or some android lollipop device. Blackberry hasnt even fixed the heartbleed bug issue yet, they are just picking their asses as governemnt agencies and other agencies are dropping blackberry and its software due to security reasons and also just not cut out for what they are doing. BB is falling out the MDM too who thought a square phone is a good a idea lol.... blackberry passport. blackberry was great last decade but not anymore. my awesome galaxy s6 does everything and more compared to any BB device. The galaxy s6 starts at $599, has a much better processor and camera then the Passport, longer battery life, much better display, and much more. The Blackberry passport has a measle 8 megapixel camera that doesnt even have OIS, dont let me get started on the Curve either and those other models ...i use a 128 GB MicroSD card with it on Wifi and it is best why would i spend my hard earned cash on a inferior product? it just doesnt make sense, the logic isnt there.

3. ThePATRIOToverlord

Posts: 50; Member since: May 29, 2015

love the VZW S6 edge, just a overall great device. look for Googles own MDM solution that they are working on to zerg the mdm market aswell.

6. gaming64 unregistered

The Android logic is diff. from other OS logics. Basically low specs= crappy phone. That doesnt apply to other platforms.

9. Dr.Phil

Posts: 2359; Member since: Feb 14, 2011

It sounds like not only have you never even picked up a Blackberry Passport, but also you didn't even bother to read the spec sheet on it. You do know the Passport has a 13 MP camera with OIS right?

16. meanestgenius

Posts: 22043; Member since: May 28, 2014

Don't even bother, Dr. Phil. You can't fix stupid.

32. Mxyzptlk unregistered

No wonder you're so broken.

37. meanestgenius

Posts: 22043; Member since: May 28, 2014

Says stupider than stupid.

13. meanestgenius

Posts: 22043; Member since: May 28, 2014

BlackBerry Passport spec: DESIGN Device type: Smart phone OS: PopupBlackBerry (10.3, 10) Dimensions: 5.04 x 3.56 x 0.37 inches (128 x 90.3 x 9.3 mm) Weight: 6.91 oz (196 g) the average is 4.9 oz (141 g) DISPLAYbenchmark Physical size: 4.5 inches Resolution: 1440 x 1440 pixels Pixel density: 453 ppi Technology: IPS LCD Screen-to-body ratio: 56.43 % Colors: 16 777 216 Touchscreen: Multi-touch Features: Light sensor, Proximity sensor, Scratch-resistant glass (Corning Gorilla Glass 3) CAMERAbenchmark Camera: Popup13 megapixels Flash: LED Aperture size: F2.0 Features: Back-illuminated sensor (BSI), Autofocus, Touch to focus, Digital image stabilization, Optical image stabilization, Face detection, Digital zoom, Geo tagging Shooting Modes: PopupBurst mode, High Dynamic Range mode (HDR) Camcorder: 1920x1080 (1080p HD) (60 fps) Features: Optical image stabilization, Continuous autofocus, Video calling Front-facing camera: 2 megapixels HARDWARE System chip: Qualcomm Snapdragon 801 8974-AA Processor: Quad core, 2200 MHz, Krait 400 Graphics processor: Adreno 330 System memory: 3072 MB RAM Built-in storage: 32 GB Maximum User Storage: 25 GB Storage expansion: microSD, microSDHC, microSDXC up to 128 GB BATTERY Talk time: 18.00 hours the average is 12 h (719 min) Stand-by time: 18.0 days (432 hours) the average is 20 days (476 h) Talk time (3G): 23.00 hours the average is 16 h (938 min) Stand-by time (3G): 18.5 days (444 hours) the average is 25 days (592 h) Music playback: 84.00 hours Video playback: 12.00 hours Capacity: 3450 mAh Not user replaceable: Yes MULTIMEDIAPopupbenchmark Music player: Filter by: Album, Artist, Playlists Features: Album art cover, Background playback Radio: FM Speakers: Earpiece, Loudspeaker INTERNET BROWSING Built-in online services support: Facebook, YouTube (upload), Twitter TECHNOLOGY GSM: 850, 900, 1800, 1900 MHz UMTS: 850, 900, 1700/2100, 1900, 2100 MHz FDD LTE: 700 (band 13), 700 (band 17), 800 (band 20), 850 (band 5), 900 (band 8), 1700/2100 (band 4), 1800 (band 3), 1900 (band 2), 2100 (band 1), 2600 (band 7) MHz Data: HSDPA+ (4G) 42.2 Mbit/s, EDGE, GPRS nano-SIM: Yes Positioning: GPS, A-GPS, S-GPS, Glonass Navigation: Yes specifications continue after the ad CONNECTIVITY Bluetooth: 4.0 Wi-Fi: 802.11 a, b, g, n, n 5GHz, ac Mobile hotspot: Yes USB: USB 2.0 Connector: microUSB Other: NFC, DLNA, Miracast, SlimPort, Tethering, Computer sync OTHER FEATURES Notifications: Service lights, Music ringtones (MP3), Vibration, Phone profiles, Flight mode, Speakerphone Sensors: Accelerometer, Gyroscope, Compass Hearing aid compatibility: M4, T4 Voice dialing, Voice commands, Voice recording Looks like someone is just trolling and didn't do their due diligence.

20. blackberry_Boy

Posts: 213; Member since: May 27, 2014

That's what I like to see get back at those who don't understand blackberries or who never picked one up I use a nexus at the moment waiting on a deal on a red passport.

5. gaming64 unregistered

Another clickbait article from phoneArena. I can expect THEPATRIOTS vs meanestgenius already.

12. meanestgenius

Posts: 22043; Member since: May 28, 2014

Can't have a legitimate "vs" match with individuals with extremely low IQ's. It's not fair to them. Besides, my Mom always told me not to argue with the mentally challenged.

15. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I've always heard you shouldn't argue with morons. They bludgeon you with stupidity until they bring you down to their level.

17. meanestgenius

Posts: 22043; Member since: May 28, 2014

Totally agree. When you argue with stupid, it just makes you look even stupider than the stupid person.

41. Crispin_Gatieza

Posts: 3137; Member since: Jan 23, 2014

If you're going into a battle of wits, don't come unarmed.

35. Mxyzptlk unregistered

Some are just so stubborn that it's not always possible to not argue. Not calling any names.

36. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

And you missed the point.

45. Mxyzptlk unregistered

You had a point?

49. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Yes I did, no surprise that you either can't or won't see it. You're so oblivious it's surprising you don't fall down more. How does someone being stubborn have anything to do with the ability to not argue with them? It's quite simple, you just don't. See, not very hard at all. No one's forcing you to argue with anyone. You made the choice to argue, and if you want to stop, that's also your choice. And your post actually proved my point. Stupid and stubborn are two different things, however someone can be stupid and stubborn, as you show us all the time.

38. meanestgenius

Posts: 22043; Member since: May 28, 2014

You clearly need VZW to justify your pitiful existence. The guy has said in several articles to not comment on his comments, and you still do. What, are you lonely? Got a crush on him? Stalking him, perhaps?

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