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Actionable news in BBRY: BlackBerry Limited,

3 Reasons to Sell Blackberry

Goldman Sachs has resumed coverage of Blackberry (BBRY) today, and analyst Gabriela Borges is telling investors to sell.

As of Friday’s closing bell, Blackberry’s share price had risen more than 37% since the start of the year, and the stock fetched a multiple of 4 times NTM EV/Sales owing to “a stronger balance sheet the transition from hardware to software and optionality around advanced driver assisted systems software.” But Borges sees a 10% downside to her $8.50 target price.

...with the auto business trading at an implied 13-17X revenue, and unlikely to ramp meaningfully until 2019, we think fundamentals will be the primary driver of the stock over the next 12 months. On this point, we see risk to 2HFY18 and FY19 estimates given the Street modeling a sharp inflection, and increasing competition in...