BlackBerry (BBRY) Q10 Sales 'Strong' in Canada, Won't Help If U.S. Flops
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Rating Summary:
4 Buy, 31 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 10 | New: 16
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BlackBerry (NASDAQ: BBRY) recently launched its new Q10 smartphone in the Canada and the UK. According to checks by analysts at Deutsche Bank, the phone is selling well in Canada. The Q10's performance in the U.K was described as "tepid."
"The results were similar to those we found with the Z10 shortly after its initial launch – a tepid reception in the UK and a much more positive response in Canada," said analyst Brian Modoff.
"In Canada, the Q10 was selling well in a majority of the stores we contacted. It was sold out in three and had limited stock in several others. Moreover, the Canadian store representatives were much more positive on the feature sets of the Q10 compared to their UK counterparts. Overall, the results surprised us as we thought that Blackberry would be challenged to remain relevant given the recent launch of the SIV," added Modoff.
The results of the survey did not change Deutsche Bank's thesis, and Madoff still thinks the company's fate is tied to Q10 results in the U.S.
"We still think the company has serious challenges in front of them in terms of declining service revenues, managing two OS platforms and migrating a user base over to an unfamiliar platform. While Canada was incrementally positive to the overall story, we believe that the US will likely be a better measure of the company's longer term outlook," concluded the analyst.
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 $14.46 yesterday.
"The results were similar to those we found with the Z10 shortly after its initial launch – a tepid reception in the UK and a much more positive response in Canada," said analyst Brian Modoff.
"In Canada, the Q10 was selling well in a majority of the stores we contacted. It was sold out in three and had limited stock in several others. Moreover, the Canadian store representatives were much more positive on the feature sets of the Q10 compared to their UK counterparts. Overall, the results surprised us as we thought that Blackberry would be challenged to remain relevant given the recent launch of the SIV," added Modoff.
The results of the survey did not change Deutsche Bank's thesis, and Madoff still thinks the company's fate is tied to Q10 results in the U.S.
"We still think the company has serious challenges in front of them in terms of declining service revenues, managing two OS platforms and migrating a user base over to an unfamiliar platform. While Canada was incrementally positive to the overall story, we believe that the US will likely be a better measure of the company's longer term outlook," concluded the analyst.
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 $14.46 yesterday.
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