BlackBerry CEO John Chen says $15 a share is “way undervalued” for the Canadian company.
Chen appeared on BNN’s “Business Day” this morning to talk about the once struggling device maker that has stabilized under his guidance. Host Amber Kanwar asked Chen if he could imagine a scenario in which BlackBerry could be acquired, and mentioned the recent rumours that Lenovo might be looking to pay $15 a share for it.
While declining to comment on the rumour specifically, Chen balked at the number.
“In my personal humble opinion that’s way undervalued,” he said.
Chen, who famously pegged the chances of BlackBerry’s survival at “50/50” early in his tenure is striking a more bullish tone and he gains experience with the company. He says there is “an enormous amount of value” yet to be unlocked from BlackBerry. “I am very confident that we will create more value,” he told Kanwar, later adding: “We’re not done yet.”
A more bullish tone has surrounded BlackBerry of late, with some analysts taking a positive stance on the company’s future.
Under Chen, BlackBerry has trimmed its losses considerably. In the company’s recent second quarter, it lost (US) $207-million, down from a loss of $965-million in the same period a year prior. The losses to date are coming against a backdrop of declining revenue; BlackBerry’s topline in the second quarter fell to $916-million, down from $1.57-billion in fiscal 2014’s Q2.
At press time, shares of BlackBerry on the TSX were down .3% to $11.81.