NEW YORK (TheStreet) -- Blackberry stock price target was lowered to $8 from $10 by analysts at Canaccord Genuity who maintained their "hold" rating.

In Wednesday's pre-market trading, shares are falling 0.68% to $8.81.

This action comes after the company yesterday reported weak first quarter 2016 results. Blackberry reported a loss of 5 cents per diluted share on revenue of $658 million, compared to a loss of 11 cents per diluted share on revenue of $966 million in the same quarter the previous year.

For the latest quarter, analysts expected the company to report a net loss of 3 cents per share on revenue of  $679.06 million, according to analysts polled by Thomson Reuters.

Blackberry's management also lowered its overall fiscal 2016 software-related sales expectations to $500 million from $600 million due to lower BBM expectations, analysts said.

Separately, TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its declining revenues."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BLACKBERRY LTD is rather high; currently it is at 62.58%. Regardless of BBRY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BBRY's net profit margin of 4.24% is significantly lower than the industry average.
  • The revenue fell significantly faster than the industry average of 33.3%. Since the same quarter one year prior, revenues fell by 32.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.69 is very high and demonstrates very strong liquidity.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • You can view the full analysis from the report here: BBRY Ratings Report