UPDATE: Credit Suisse Downgrades BlackBerry Ltd

Credit Suisse downgraded BlackBerry Ltd BBRY to Underperform with a 12-month target price of $6.

Analysts led by Kulbinder Garcha noted in a report that SG&A expenses have declined and units of smartphones have increased. Despite these improvements Blackberry’s ability to ramp up services and improve operations remains in doubt.

Blackberry’s difficulty in the face of the Apple Inc.'s iPhone and Google Inc.'s Android software has been observed for years. The Credit Suisse forecast did not report any clear path for BlackBerry to achieve long-term growth in the face of its competition.

The report concludes that revenue from services will continue to decline, hardware profits may be unsustainable and it may be more advantageous to break-up the company than attempt a turnaround.

BlackBerry Ltd traded recently at $10.03, down 1.9 percent.