Canaccord Genuity analyst Michael Walkley maintained a Hold rating on BlackBerry Monday and set a price target of $8, after it conducted a wireless survey for the company.
The firm highlighted its recent survey’s findings, which indicated “soft” smartphone sales to the end customers.
Canaccord analysts maintained below-consensus estimates for third quarter of calendar 2016, and for fiscal year 2016.
Given the deteriorating trends, and BlackBerry’s hardware revenue recognition on a sell-through basis compared to channel shipments, the analysts maintained their hardware estimate of 975,000 units for the second quarter of fiscal 2016.
Furthermore, they believe that most of BlackBerry’s FY16 hardware sales will be driven by the existing portfolio, which faces a gradually diminishing consumer interest.
However, the company’s new Android device can improve consumer demand. The firm expects the new Android device’s sale to modestly increase overall hardware sales, given the intense Android competition.
Additionally, BlackBerry recently acquired Good Technology for $425 million, in a bid to expand its global enterprise, along with government customers.
Previously, Canaccord highlighted the Good Technology deal as a positive factor, but now its analysts are cautious over the company’s ability to achieve synergies necessary to offset Good Technology’s net losses.
