Much to the chagrin of RIM’s management, who have watched the stock rally around a number of positive Blackberry 10 announcements, a financial analyst with Canaccord Genuity has downgraded the company’s shares to a “sell”.
Analyst Michael Walkley wrote in a note to clients Monday morning that his firm does not believe BB10 will return RIM to profitability.
“Our checks do not indicate the consumer pull, carrier push or developer excitement necessary for BlackBerry 10 to reverse the challenging trends faced by RIM,” Mr. Walkley said.
“As a result, we downgrade to ‘Sell’ based on our $10 [assessment].”
According to media reports, most major financial firms — including Goldman Sachs and National Bank — have remained positive about BB10 as a return to profitability for RIM.
With this note, Canaccord joins Morgan Stanley as the second firm to view RIM’s future with an air of caution.
In his report, Mr. Walkley goes as far as to question whether the future viability of RIM as a whole.
“Given our belief that BB10 smartphones will struggle to gain sustainable traction in the highly competitive smartphone market, especially with a launch date post the important holiday season, we believe RIM may eventually sell assets, sell the entire company or materially change its business model to a smaller niche supplier,” the firm said.