BlackBerry stock is currently up 23%

BlackBerry stock is currently up 23% from where it traded going into Friday morning’s FQ3 report, as shorts continue covering and investors give a thumbs-up to interim CEO John Chen’s plan to shift a large chunk of the company’s smartphone R&D work to Foxconn, and thereby aid the company’s efforts to become profitable by FY16.

The gains come even though many on the sell-side have urged investors to take profits.

Hudson Square Research, which cut shares to Sell yesterday, is worried about plunging service revenue and “an uncertain path for converting enterprise customers to a material per-user recurring fee.”

Bernstein, meanwhile, is worried about BlackBerry’s cash burn.

FBR has reiterated an Underperform, and thinks BlackBerry’s phone business will likely “need a few quarters before showing signs of recovery.” At the same time, the firm is pleased Chen provided what it considers:

“a candid and sobering assessment of [a] business that is in desperate need of a new and profitable direction.”

Stock price is currently sitting at $7.68.[signoff predefined=”Enjoy this?” icon=”icon-users”][/signoff]