Blackberry (BBRY) Checks Show Euphoria Fading Fast, Analyst Warns of Margin Pressure

March 22, 2013 9:06 AM EDT
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According to checks by analysts Brian Modoff of Deutsche Bank, euphoria over Blackberry's (Nasdaq: BBRY) Z10 phones is quickly fading in both the UK and Canada. In their most recent round of checks, researchers contacted 60 stores and not one was sold out, and two stores have already cut prices.

"Over the past week two carriers in Canada have cut prices on the Z10, suggesting to us lessened demand and possible margin pressure ahead," said Modoff.

This was the third round of checks by analysts at the bank. So far users appear satisfied with the device with few returns, but early zeal appears to be fading.

"In sum, we have contacted over 150 plus stores since the launch (90 in the UK and 60 in Canada) and while we did see some initial traction in Canada, even that appears to have been short-lived," concluded the analyst.

Blackberry Z10 phones go on sale in the U.S. today.

Deutsche Bank has a Hold rating on BlackBerry with a price target of $8.00.

For an analyst ratings summary and ratings history on BlackBerry (NASDAQ: BBRY) click here. For more ratings news on BlackBerry click here.

Shares of BlackBerry closed at $16.16 yesterday.

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Opar on 2013-03-22 09:40:40
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The same checks were conducted (by Faucette I belive) after UK and Canada launch and turn out to be false. I waited not buy in shares....i got burnt when suddenly the price skyrocked. Not this time!!! I will increaae position later. Greedy degree holders called

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