Market Overview

Bernstein Sees Blackberry's Business Model Under 'Severe Pressure' on Lackluster BB10 Results

Share:
Related BBRY
Fairfax Financial CEO: BlackBerry Is The 'Only' Phone To Use
Gartner: Apple Now No. 1 In China, Samsung Losing Global Share
Morgan Stanley: BlackBerry's FY16 software target appears unattainable (Seeking Alpha)

Blackberry (NASDAQ: BBRY) shares tumbled nearly 30 percent Friday after the company reported shipments of its BB10 phone missed Q1 estimates and forecast an operating loss for Q2.

The stock is continuing lower this week (down 2+ percent Monday afternoon) as the company received a round of downgrades following the news. Bernstein's Pierre Farragu joined the crowd, cutting Blackberry to Underperform and slashing his price target from $10 to $7.

The analyst said the $7 price target is a floor value based on the company's net assets, not a "fair value" of the stock.

Farragu said the BB10 was gaining "very limited traction with users" and expects the Blackberry business model to come under "severe pressure" on declining shipments, eroding revenue and pricing tension.

Farragu maintains an Underperform rating on shares of BlackBerry.

Latest Ratings for BBRY

DateFirmActionFromTo
Mar 2015NomuraMaintainsNeutral
Mar 2015RosenblattInitiates Coverage onSell
Mar 2015Goldman SachsDowngradesNeutralSell

View More Analyst Ratings for BBRY
View the Latest Analyst Ratings

Posted-In: Analyst Color News Price Target Analyst Ratings

 

Related Articles (BBRY)

Around the Web, We're Loving...