BlackBerry wins price target raise at Baird

In the wake of refreshed takeover rumours, this time in the form of Veritas Capital, Baird analyst Luke Junk has raised his price target on BlackBerry (BlackBerry Stock Quote, Chart, News, Analysts, Financials NYSE:BB)

On August 29, Baird raised his price target from $5.50 to $6.00. The stock closed August 28th at $5.34 on the NYSE, so the new target implied a return of 12.3 per cent at the time of publication.

“Junk believes that BlackBerry IVY, the company’s cloud-connected platform, has the potential to be a game-changer,” reported Beststocks’ Elaine Mendonça. “However, he acknowledges that cybersecurity remains the primary focus for BlackBerry at present. According to the analyst, automakers have a strong desire to create and capitalize on recurring revenue streams, and IVY could serve as a crucial catalyst for the stock. However, he cautions that it is still early to fully assess its impact.”

On August 25, Reuters reported that private equity firm Veritas Capital had made an offer to buy BlackBerry.

“Morgan Stanley (MS.N) and Perella Weinberg Partners are acting as financial advisors to BlackBerry for the strategic review, Greg Roumeliotis reported.

Founded in 1992, Veritas Capital is a New York-based private equity firm with approximately $45-billion under management. Its notable acquisitions include Raytheon, DynCorp, Harris Corporation and Peraton.