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NEW YORK (TheStreet) -- Shares of BlackBerryundefined were retreating, lower by 0.8% to $9.95 in midday trading Friday, after analysts at Morgan Stanley issued a negative note on the company earlier today.

Analysts at the firm said its checks revealed that BlackBerry is facing a tough mobile device management market that may be more mature than most people think.

Morgan Stanley analysts added that they also found the refresh cycle for BlackBerry devices at enterprise accounts to be "underwhelming" to date.

The firm now sees the company's goals of reaching its forecast of $500 million in annual software revenue exiting fiscal 2016 as "unattainable."

Morgan Stanley maintained its "underweight" rating with a $7 price target on BlackBerry shares.

Canada-based BlackBerry is a provider of wireless solution, comprised of smartphones, service and software.

The company provides hardware, software and services that support multiple wireless network standards.

It also provides platforms and solutions for access to information, including email, voice, instant messaging, short message service, internet and intranet-based applications and browsing.

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 a number of negative factors, 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.
  • This stock has increased by 40.49% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BBRY do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • You can view the full analysis from the report here: BBRY Ratings Report