BlackBerry shares hit by Pacific Crest report

Tue May 7, 2013 3:27pm EDT
 
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TORONTO May 7 (Reuters) - Shares of BlackBerry slid more than 5 percent on Tuesday after Pacific Crest Securities issued a downbeat report on sales momentum for smartphones running the company's new BlackBerry 10 operating system.

Pacific Crest analyst James Faucette, who has a underperform rating on the company's stock, said he believes initial shipment and sales volumes for the BlackBerry Q10 - a device that comes with a physical keyboard - have not been strong.

Faucette said sales of the BlackBerry Z10 - a full touchscreen device also powered by the new BB10 operating system - are slowing down as well.

"We believe the production levels of 1.5 million to 2 million units per month are well in excess of the sell-through," Faucette said in a note to clients on Tuesday, adding that the company is likely going to be forced to cut production levels.

The Pacific Crest report comes less than a week after Jefferies analyst Peter Misek said sales of the Q10 were strong in both Canada and Britain - the two countries in which the device has been launched.

BlackBerry's volatile shares were down 5 percent at $14.80 in afternoon trading on the Nasdaq, while its Toronto-listed stock was down 5.5 percent at C$14.88.

($1=$1.00 Canadian) (Reporting by Euan Rocha; Editing by Peter Galloway)