BlackBerry Ltd (NASDAQ:BBRY) stock slumped to hit a one month low of 6% after BGC analyst Colin Gillis gave out a “hold” rating to the Canadian company in a poetic fashion. The rating comes only a day before the company releases its second financial quarter report.
BGC downgraded BlackBerry Ltd (NASDAQ:BBRY) from “buy” to “hold”, something that will see investors hold their desires to buy the stock. BGC gave Blackberry Ltd a “buy” rating just 3 months ago.
This rating comes shortly after another analyst released a rating that pulled blackberry down from a “buy” to “market perform” with a price target of $11.50. Another analyst at Zacks had in July given the company a “neutral” rating. They have given the stock a price target of $10.
Gillis believes that in the FQ2 report, the company’s hardware sales will drop by 52% to $371 million. He has put the company’s total revenue at $928, close to $20 million below the $951 consensus.
“While we remain positive on the effort of current management, the quarterly results that the company prints (Friday, FQ2) may prove underwhelming,” Gillis wrote in his rating report.
Gillis rating of BlackBerry Ltd (NASDAQ:BBRY) also came just one day after the company had released the Passport device. According to Gillis, the new device may not generally perform well in the market.
“Passport is built for productivity and the target audience is the mobile professional who carries two devices,” says BlackBerry exec Sarah Jacobs.
With the release of the new device coming at a time when some big companies such as Apple Inc. Samsung, and Google Inc. have also released several widescreen smartphones, it might be a bit of a challenge for BlackBerry Ltd (NASDAQ:BBRY) to get a foothold in the market with the device.
This article has been writtenby Victor Ochieng.