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UPDATE: Wells Fargo Downgrades BlackBerry on Far Out Success

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In a report published Friday, Wells Fargo analyst Maynard Um downgraded BlackBerry (NASDAQ: BBRY) from Outperform to Market Perform.

In the report, Wells Fargo commented, "Our downgrade does not necessarily reflect a view that BBRY will not be able to succeed (while we still believe it can upgrade its existing installed base, admittedly visibility is limited), but, rather, that success may be further out than we would like and that the benefits may be costly upfront as the company invests heavily. However, at 0.2x EV/sales, we believe investors are already handicapping limited/no success and believe valuations at these levels are risky to be short as these levels have, based on our past experience with other tech companies, typically prompted some action. However, we do not believe valuation alone is a strong enough rationale to be long BBRY at this point in time."

BlackBerry closed Thursday at $14.48.

 

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