BlackBerry Upgraded by RBC

Better than expected channel-fill forced this analyst to bump his estimates.

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The Motley Fool

BlackBerry (TSX:BB,NASDAQ:BBRY) shares are higher today on the back of an upgrade from RBC Capital Markets.

RBC is raising its unit estimates on faster than expected “channel-fill” of the Z10/Q10 and an earlier than expected launch of the stripped down Q5.

The increased estimates have driven RBC’s expected unit sales for FY14 to 14 million from 11 million and cranked expected EPS to $0.35 from -$.04.

“Sell-through” has been strongest for the company’s new products in Canada, the UK, and the Middle East.  Sales however in the company’s most important market, the U.S., haven’t been great, but this could improve now that the Q10 has been launched south of the border.

Foolish Takeaway

While the RBC analyst has put forward his best guess of BB’s unit sales, what this means for the company’s stock remains a mystery.  The analyst’s target of $18 fits nicely between his upside of $24 and downside of $11.  He could be right under a lot of scenarios!

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Fool contributor Iain Butler does not own shares of any company mentioned.  The Motley Fool does not own shares of any company mentioned.        

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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