Citi upgrades Blackberry despite uncertainty over Fairfax buyout and declining market share

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Someone out there is still optimistic about Blackberry - just not about the takeover planned by Fairfax Financial Holdings. Citi analyst Jim Suva has raised his price target for Blackberry stock to $9, and the rating of the tech company is now "neutral" from "sell".

That same analyst has cut his net loss estimate for the fiscal year ending February to $0.91 from $0.93, and for the following year from $0.79 to $0.70.

Suva is less confident about the buyout offer which was announced last month. Blackberry have accepted a tentative offer from Fairfax of $4.7bn (£2.9bn), but Reuters reports that Cerberus Capital Management could be considering a rival offer. At its peak Blackberry was valued at more than 16 times that $9 offer.

The note also raises concerns about the erosion of Blackberry's smartphone platform.

Our Long term thesis of market share losses amidst BYOD threat has largely played out ... as the stock is now down -75%, -18% and -32% in 2011, 2012 & 2013, (vs the market up flat, +13% & +19%) respectively.