Credit Suisse Believes The Jury Is Still Out On BlackBerry Ltd

In a report published Monday, Credit Suisse analyst Kulbinder Garcha reiterated an Underperform rating and $6.00 price target on BlackBerry Ltd BBRY.

In the report, Credit Suisse noted, “BlackBerry reported results that were lower than expected on the top line ($916mn vs. CS/consensus of $924mn/$946mn) with the underlying operating income of $2mn (vs. CS estimate of -$48mn), mainly driven by lighter SG&A expenses and higher smartphone units sold. While this is to be applauded, we continue to have reservations on BlackBerry's ability to ramp up services and operate more competitively. We expect the company to continue to burn cash and we reiterate our TP of $6 and adjust our FY15/16 EPS to ($0.50)/($0.64).”

BlackBerry closed on Friday at $10.26.