Bobby Harvey
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Auto Business Prospects Not Enough To Breathe Life Back Into BlackBerry

BlackBerry Ltd BBRY shares are up 32 percent in 2017 as investors have cheered the company’s transition from hardware to software, its focus on mobile security, its improving balance sheet and its positioning in the next-generation auto industry.

However, without a positive catalyst ahead for the stock in the near future, Goldman Sachs has reinstated a Sell rating on BlackBerry stock, which analyst Gabriela Borges sees as fundamentally overvalued.

Goldman estimates BlackBerry’s auto business is currently valued at a bloated 13 to 17 times revenue and sees very little near-term growth potential in the business. Borges said BlackBerry investors can expect a meaningful tailwind from the auto business starting in 2019. Source

Shares move inside the falling channel. Stochastics are in the oversold territory, so there is an upside potential.

Shares have all chances to break out the channel and form a rising trend. 

$BBRY, BlackBerry Limited / D