This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BlackBerry's Grim Prospects: Z10 Launch Disappoints (Update 1)

Updated from 8:58 a.m. EST to provide analyst comments regarding earnings in the tenth paragraph.

NEW YORK ( TheStreet) -- The launch of the BlackBerry (BBRY - Get Report) Z10 didn't go as well as some were expecting. That has caused several Wall Street analysts to rethink their positions, with one research firm even downgrading the name.

Goldman Sachs analyst Simona Jankowski removed the Waterloo, Ontario-based technology firm from Goldman's Americas Buy List due to a disappointing launch at AT&T (T - Get Report); the overall consensus had moved higher on BlackBerry since Goldman added the company to the Buy List in late November. Since the Nov. 29 add, shares are up 34%, compared with a 10% climb in the S&P 500. Jankowski downgraded the stock to "neutral," and lowered the price target to $17 from $19.

The concern has been that BlackBerry 10 is going up against smartphone behemoths like Apple (AAPL - Get Report) with its iPhone, Samsung with its Galaxy S series, and Google (GOOG - Get Report) with the Nexus. The chances of outright success are limited.

"We now assign a 20% probability of success for BB10, down from 30% previously, as the disappointing launch of the Z10 at AT&T reduces our confidence that sell-through of the BB10 will be successful in the important US market," Jankowski wrote in her report.

BlackBerry has been losing market share for some time now, owning 3.2% in the fourth quarter, according to research firm IDC. The hope is that BlackBerry 10 will turn that around, but a weak domestic launch makes those prospects a bit harder.

Citi analyst Jim Suva, who rates BlackBerry "sell," noted his checks revealed "shockingly low support by AT&T with extremely limited signage & more signage for Samsung & Apple products," as well as poor product placement, a lack of knowledge on the device, and a surprising low amount of inventory.

Less than 5% of AT&T stores around the country sold out on initial stock of the BlackBerry Z10, with most stores getting a dozen or two smartphones. "In summary, the initial Z10 in the US is a disappointment and a stark contrast to the successful Europe & Canada launches," Suva wrote. He has a $6 price target on BlackBerry shares.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.88%
BBRY $10.48 2.04%
GOOG $540.11 -0.44%
T $34.71 -1.03%
FB $80.54 0.07%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs