BlackBerry shares rise after strong phone sales pr
BlackBerry shares rise after strong phone sales prompt Societe Generale upgrade
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Niamh Ring, Bloomberg News
Thursday, Jun. 13, 2013
Societe Generale forecasts Q10 sales could reach almost 1 million in the fiscal first quarter. Galit Rodan/Bloomberg
BlackBerry rose the most in more than two months after Societe Generale SA boosted its rating on the stock to buy from sell, saying channel checks show the smartphone maker’s new devices are selling well.
The shares gained 6.3% to US$14.42 at the close in New York, the biggest jump since March 20. The stock has climbed 21% this year.
BlackBerry is seeking to revive sales after losing market share to Apple Inc.’s iPhone and Samsung Electronics Co.’s Galaxy devices. This year the company introduced the Z10, which has a touch-screen, and the Q10, which targets BlackBerry loyalists with a physical keyboard.
“Our base case scenario now assumes that the new handset sales have been faster than we previously assumed,” Andy Perkins, a Societe Generale analyst, wrote.
Societe Generale forecasts Z10 sales of more than 4 million in the fiscal first quarter, up from 1 million in the prior period. Q10 devices could reach almost 1 million, according to an investor note.
First-quarter revenue may be US$3.7-billion, up from US$2.7-billion in the prior period, he said. That compares with an average analyst estimate of US$3.4-billion, according to data compiled by Bloomberg.
Samsung accounted for a third of smartphone sales last quarter, while Apple had 17%, according to IDC. Waterloo, Ontario-based BlackBerry saw its share fall to 3.2% in the fourth quarter, before the company dropped out of the top five in this this year.
BlackBerry is scheduled to report earnings on June 28.
Bloomberg News
Posted in: FP Tech Desk, Investing Tags: BlackBerry