Deutsche Bank Downgrades BlackBerry (BBRY) to Sell

July 1, 2013 7:24 AM EDT
Get Alerts BBRY Hot Sheet
Price: $7.27 --0%

Rating Summary:
    7 Buy, 39 Hold, 16 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Deutsche Bank downgraded BlackBerry (NASDAQ: BBRY) from Hold to Sell with a price target of $6.00 (from $8.00). Analyst Brian Modoff thinks the BB10 and its device business will be the company's Achilles heel.

"If they choose to keep plowing money into marketing BB10 devices across the globe, it will create a heavy cash burn unless the uptake begins to quickly gain traction. Historically this has not happened with other handset companies and we do not expect this trend to change with Blackberry," said Modoff.

"Their BES 10 announcement yesterday had a curious timing to it. Alongside their clear effort on the call to highlight other strengths outside of devices, it appears that management sees some signs of strength there – at least relative to the devices business. There could be longer term value for the BES 10 platform; the question however is will management give it the adequate focus and resources to succeed against Mobile Iron, Air Watch and Citrix and is it good enough to succeed as a stand-alone platform, without a Blackberry device on the other side," added the analyst.

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 $10.46 yesterday.

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