BlackBerry Continues To Struggle And Credit Suisse Thinks It's Time To Break Up The Company

Credit Suisse on Monday issued a report on BlackBerry Ltd BBRY after the company last week reported revenues that missed analyst expectations. Credit Suisse rates Blackberry as Underperform with a $6 price target.

Analysts Kulbinder Garcha and Achal Sultania wrote, "BlackBerry reported results that were considerably lower than expected on the top line... We continue to have reservations on its ability to ramp up software and operate more competitively. We expect the company to continue to burn cash...Given the inherent challenges in turning around the services stream, and subscale loss-making hardware business, we believe it would be best for the company to break up."

BlackBerry's service businesses have seen a steep decline recently. This is due to a subscriber bases that continues to erode, a falling ARPU due to the shift toward BB10, and the difficulty in the monetization of EZ Pass. Analysts are concerned with gross margins continuing to fall lower due to the decrease in revenues from their multiple business segments.

Shares of BlackBerry recently traded at $9.18, down 2.9 percent.