Research In Motion Ltd (NASDAQ:BBRY) shares are reportedly down by 73 cents at $14.46 after a host of negative notes from Wall Street today.
Kris Thompson of National Bank Financial has reinstated an Underperform rating on the stock and set a price target of $10. He has mentioned in his note that the new Q10 and Z10 BlackBerry phones, operating on the latest BlackBerry 10 OS, would not be enough to bring back good times to the hardware business of the company.
Thompson has cut its predictions on for profit and revenue of the company in the fiscal year starting March to $13.75 billion. It has calculated loss of 63 cents from an initial $14.36 billion, based on sales of 35.5 million smartphones.
Thompson thinks that the company will have $3.81 per share in cash at the ending of 2014.
Thomson is critical of the holdup in the launch of the new BlackBerry Q10 and Z10 smartphones. The Z10 went on sale very recently in Canada and the UK.
Thompson’s main complaint, however, lies in the breakdown of the services business of RIM. He is very serious with the discussion of the company regarding its services business. He has argued that the breakdown has left shareholders with a clear picture of where exactly the revenuers are headed to.
Brian Blair of Wedge Partners has spoken out that mobile carriers are expecting that customers would not leave their Android or Apple handsets for the new BlackBerry smartphones. Blair said that the carriers in the US are not sounding positive about the Z10 sales. However, they are hopeful about the Q10 that is supposed to make it to the market sometime between the months of May and June. US carriers have also said that they are seeing proofs of increasing enterprise support for the iOS and Android ecosystems.