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
TheStreet Open House

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) 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); 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) with its iPhone, Samsung with its Galaxy S series, and Google (GOOG) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs