Canaccord lowers BlackBerry 2016 revenue estimates dropping stock

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BlackBerry shares are dropping to $7.77, after Canaccord Genuity lowered its 2016 revenue estimates to $2.48 billion from $2.70 billion, with earnings lowered to loss of $0.38 from a $0.20 loss per share.

The firm maintained its “hold” rating and $8 price target on the stock.

Canaccord lowered earnings estimates of BlackBerry due to the lack of visibility for the cadence of new technology licensing deals and the timing of licensing payments.

Canaccord analysts said:

“We believe the continued steep decline in high margin services business and ongoing tepid hardware sales will remain a headwind to meaningful and sustained profitability during 2016 and 2017,”

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