BlackBerry's Glass 'Looking More Half-Full'

In a report published Tuesday, RBC Capital Markets analysts maintained a Sector Perform rating on

, with a price target of $11. "Classic/Passport are not doing too great and we're cutting our near-term unit estimates from 1.4M to 700k," the analysts said. The unit estimate for FY16 has been reduced from 6.5M to 3.2M. The revenue estimate for F1Q now reflects a 50 percent decline to $487M, while the EPS estimate for CY15 has been reduced from ($0.08) to ($0.15). "The devices business is becoming less relevant for the long-term future of BlackBerry," the analysts wrote, while adding, "BlackBerry's pushing to win back customers with a focus on certain key verticals (e.g. govt., financials, military, healthcare)…BlackBerry expects software revenues to ramp in the back-half of FY16 with a $600M target." Although the estimates have been reduced to reflect hardware units, but it is not the focus. "We're seeing encouraging signs with regulated verticals for BlackBerry's software. The tie-in with Android's taking shape and an acceleration with iOS features will help show a clearer path to $600M," the report by RBC Capital Markets mentioned. Although BlackBerry's stock appears "somewhat range-bound," the analysts believe that the "glass is looking more half-full."