UPDATE: FBR Capital Markets Reiterates Underperform Rating, Lowers PT on BlackBerry Ltd. Following Disappointing F2Q14 Results

In a report published Monday, FBR Capital Markets analyst Scott Thompson reiterated an Underperform rating on BlackBerry Ltd. BBRY, but lowered the price target from $9.00 to $7.00. In the report, FBR Capital Markets noted, “On Friday, September 20, BlackBerry preannounced F2Q14 results, revealing a business that appears to be declining much more rapidly than we expected. While details were limited, we expect investors will have some pointed questions when the company holds its quarterly conference call on September 27. Revenues are expected to come in nearly 50% below consensus estimates; earnings are expected to plummet. We have very little confidence that even aggressive cost cuts will correct the company's losses and find it difficult to believe the company will be able to maintain longer-term credibility with customers or suppliers. With a BB10 line that has generated very little traction, we expect BlackBerry will likely continue to struggle to remain relevant in an increasingly competitive smartphone environment. Furthermore, we expect BlackBerry's adjusted cash position could be negative, creating a sense of urgency to sell the company. We continue to believe that a sale, particularly a piece-part sale, is unlikely to happen at prices above where shares trade today. We urge investors to eliminate exposure to this stock. We reiterate our Underperform rating and lower our CY13 price target to $7 from $9.” BlackBerry Ltd. closed on Friday at $8.73.