Analyst cuts rating on BlackBerry, stock falls

Analyst cuts rating on BlackBerry, stock falls
With BlackBerry set to announce its fiscal first quarter earnings report next week, Bernstein analyst Pierre Ferragu has cut his rating on the shares of the Canadian manufacturer to "underperform", resulting in a 4.6% drop in the price of the stock on Wednesday. While a pair of analysts last week both said that they expect BlackBerry to have shipped more phones than expected in the prior quarter, Ferragu sees disappointing results coming from the announcement.

In a note to clients, Ferragu said, "The initial enthusiasm that we observed for Blackberry 10 devices now appears to be waning," and cut his target on the stock to $10 from $15. BlackBerry has introduced three BlackBerry 10 models this year with another 3 to 4 expected before the end of the year. BlackBerry has been guarded about how well the all-touch BlackBerry Z10 and the QWERTY equipped BlackBerry Q10 have fared in the market, so the earnings report is expected to be closely watched by both Wall Street analysts and industry players.

As of mid-day Wednesday, BlackBerry shares were trading at $14.16, down 68 cents on the day. Last September, the stock traded as low as $6.22.

source: Reuters

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16 Comments

1. jdoee100

Posts: 334; Member since: Jun 04, 2013

Can't trust news aka trash anymore. One day, it's doing great. Next day, it's doing terrible. Huh? Only hard numbers like revenue, profit, etc tell the truth.

3. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

Damn it you were so fast..

4. jdoee100

Posts: 334; Member since: Jun 04, 2013

snooze you lose. lol

5. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

"Can't trust news aka trash anymore. One day, it's doing great. Next day, it's doing terrible. Huh?" I think that BlackBerry was spreading propaganda to artificially increase confidence in BlackBerry.

6. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

BlackBerry propaganda haha, Like North Korea :)

11. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

Not like North Korea, but still propaganda. P.S. Propaganda exist not only in North Korea.

2. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

Good news :)

7. cornerofthemoon

Posts: 616; Member since: Apr 20, 2010

One day Blackberry is booming, the next day it's screwed, then booming again, then screwed....My head is spinning.

8. XPERIA-KNIGHT unregistered

Dude you're such a hater......^^@Nikolas Oliver

14. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

Haters.. Haters everywhere

9. GeekMovement unregistered

i hope blackberry can step it up and continue to improve their bb10 os. I'd really love to give it a try if only Sprint would carry them (and windows phone)... dang it sprint!

12. ZeroCide

Posts: 806; Member since: Jan 09, 2013

Sprint is always late to the party.

10. ZeroCide

Posts: 806; Member since: Jan 09, 2013

The end is nigh.

13. ibap

Posts: 865; Member since: Sep 09, 2009

And when we find out Ferragu is busily selling the stock short? (And I mean that literally, in the market.)

15. apiskula

Posts: 578; Member since: Jan 25, 2013

This is great news

16. vddeguzman

Posts: 41; Member since: Jul 12, 2012

That's too bad. But maybe they just have to launch more devices to keep the buzz. That's why Samsung, Sony, LG keep on launching so many models almost every month.

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