Deutsche Bank Reports Ho-Hum Results from BlackBerry's (BBRY) Launch Survey
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Rating Summary:
9 Buy, 28 Hold, 21 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Deutsche Bank reported results of recent checks on the launch of BlackBerry's (NASDAQ: BBRY) Z10 smartphone in the UK and Canada. The results were solid for the new device although they don't believes initial results from the launch will translate into strong sales for the device.
"Over the past two days, we conducted another survey of carrier stores. We used the same 30 carrier stores in the UK, but this time added 30 carrier stores in Canada. The story from each geography was very different. In Canada, many stores reported being sold out of the Z10 and the sales force was well-versed on the device’s attributes; however, a few representatives told us that they did not receive a large initial inventory. In the UK, the sales force was better-versed on the feature sets relative to the week prior; however, no stores were sold out. We maintain our Hold as we think the initial signs of this launch do not indicate the strong sales we would like to see."
In Canada, the firm notes the country is rooting for the home team. "It appears that Blackberry has done a much better job at defending their home turf. The sales representatives appear well-trained and while there are incidents of low initial stocking levels, demand generally appears better in Canada than it does in the UK. We think strong sales in Canada is a requirement for BB10 to gain the traction globally."
In the UK, it appears that Blackberry is correcting the missteps in made in the first week, the firm notes. "While this may not affect initial demand there, it will go a long way towards helping them gain mind-share with the consumer and hopefully that will translate into sales over the longer term. We will continue to monitor their progress there closely, but so far, we conclude that the sales in the region have been tepid."
The firm reiterated their Hold rating and price target of $8.00.
For an analyst ratings summary and ratings history on BlackBerry click here. For more ratings news on BlackBerry click here.
Shares of BlackBerry closed at $13.99 yesterday, with a 52 week range of $13.52-$17.22.
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"Over the past two days, we conducted another survey of carrier stores. We used the same 30 carrier stores in the UK, but this time added 30 carrier stores in Canada. The story from each geography was very different. In Canada, many stores reported being sold out of the Z10 and the sales force was well-versed on the device’s attributes; however, a few representatives told us that they did not receive a large initial inventory. In the UK, the sales force was better-versed on the feature sets relative to the week prior; however, no stores were sold out. We maintain our Hold as we think the initial signs of this launch do not indicate the strong sales we would like to see."
In Canada, the firm notes the country is rooting for the home team. "It appears that Blackberry has done a much better job at defending their home turf. The sales representatives appear well-trained and while there are incidents of low initial stocking levels, demand generally appears better in Canada than it does in the UK. We think strong sales in Canada is a requirement for BB10 to gain the traction globally."
In the UK, it appears that Blackberry is correcting the missteps in made in the first week, the firm notes. "While this may not affect initial demand there, it will go a long way towards helping them gain mind-share with the consumer and hopefully that will translate into sales over the longer term. We will continue to monitor their progress there closely, but so far, we conclude that the sales in the region have been tepid."
The firm reiterated their Hold rating and price target of $8.00.
For an analyst ratings summary and ratings history on BlackBerry click here. For more ratings news on BlackBerry click here.
Shares of BlackBerry closed at $13.99 yesterday, with a 52 week range of $13.52-$17.22.
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52 week?
joe on Feb 14, 2013 09:09 AMMark as Spam | Reply to this comment
with the 52 range you forgot to include the old symbol data...sloppy