BlackBerry Ltd (NASDAQ:BBRY) is in the news today after Wells Fargo & Co (NYSE:WFC) raised its price target for the company’s stock and after its CEO John Chen shrugged off the recent deal between Apple Inc. (NASDAQ:AAPL) and International Business Machines Corp. (NYSE:IBM).
Wells Fargo analyst Maynard Um, in a note to clients which was sent out early Tuesday, raised the price target for BlackBerry Ltd (NASDAQ:BBRY). Um’s revised valuation range for the company comes after meetings with the smartphone and services company’s senior executives.
In the note, Um raised his price target range for BlackBerry Ltd (NASDAQ:BBRY) from $8.50 – 9.50 to $9.50 – 10.50. Earnings per share estimates for the fiscal year 2015 was also raised from -$0.88 to -$0.58. EPS for fiscal year 2016 was also raised by Um from -$.082 to -$0.27.
However, despite this more positive outlook on the company’s performance, Um kept the Market Perform rating for the company.
Meanwhile, BlackBerry Ltd (NASDAQ:BBRY) CEO John Chen shrugged off the recent deal between industry giants Apple Inc. (NASDAQ:AAPL) and International Business Machines Corp. (NYSE:IBM).
In an interview with the Financial Times, the BlackBerry Ltd (NASDAQ:BBRY) CEO said that the Apple-IBM deal is like when “two elephants start dancing” and hinted that he expects difficulties with the new tie-up because both companies are dominant and are used to being leaders in their endeavors.
Furthermore, Chen, if indeed worried, has not hinted about his concerns about the new deal between his competitors. In fact, he said it could be a good thing for the market.
“The IBM-Apple tie-up validates what is a huge market. But the bad news is that you are waking up two giants. It’s competition but it’s good competition and we are going to be more nimble. You don’t want to be a strong guy in a market that is not growing,” he said.
Furthermore, Chen said that he is in talks with other players in the technology industry for possible deals like the one Apple Inc. (NASDAQ:AAPL) and International Business Machines Corp. (NYSE:IBM) have entered into.