Deutsche Bank earlier maintained a Hold rating on BlackBerry (NASDAQ: BBRY) and lowered its price target to $7.00 (from $9.00). The change follows the company's Q1 results. Analyst Brian Modoff described results as "weak."

"We note meaningful weakness in the hardware business ($263.2M versus consensus: $327.5M) and in services ($250.0M versus consensus: $271.6M). Software revenues, however, were boosted by one quarter items such as licensing revenues from CSCO, leading to a beat versus consensus ($138.2M versus consensus: $83.5M). Maintain our Hold rating, noting a directionally slowing core business and the software beat colored by one-time items and Q/Q volatility from license fees, etc," said Modoff.

"We remain skeptical of management's FY16 guidance commentary (which seems more of an objective versus a fundamental outlook): the company noting anticipation of positive free cash flow and sustainable non-GAAP profitability during FY16," continued the analyst.

Modoff added, "We think it is prudent to maintain our neutral near-term outlook and our Hold rating on the stock. Our view is based on a directional decline in the core hardware business, and software revenues colored by one-time items (CSCO licensing revenues, etc). We note that BBRY's software revenues have been growing low to mid 20% Y/Y over past few quarters, with license fees systematically increasing Q/Q revenue volatility (which could be a detractor tothe forward trading multiple), summing up the basis for our Hold rating."

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 $8.81 yesterday.