This BlackBerry Analyst is Astonishingly Bearish

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

blackberry1It’s a broadly destructive phenomenon and nobody likes it, but when analysts speak, stocks move. Shares of BlackBerry (NASDAQ:BBRY) traded steadily downward on Friday morning, and were off as much as 3.98 percent at noon. In the absence of other major catalysts, the reason seems to be a downgrade issued by an analyst at MKM Partners.

According to Forbes, the analyst cut his rating on the stock from Neutral to Sell, and lowered his price target from $12 to $10, 25.6 percent below Thursday’s closing price. His reasons are largely an aggregate of the same concerns that other bears have: expectations for soft sales, uncertainty over the application ecosystem (the platform has just 10 percent of the most-popular Android apps, and less than 5 percent of the most-popular iOS apps, according to the analyst), and an undifferentiated brand.

These stocks are hitting our Profit Targets. Click here now to discover winning stocks!

“Our new price target reflects the lower probability of success we attribute to BlackBerry 10 following our testing of the Z10 and observing BB10’s momentum stall out in the U.K. after only a few weeks,” wrote the analyst, who forecasts a shockingly high probability of failure…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business