BUZZ-BlackBerry Ltd: Goldman Sachs says "sell", forecasts wider losses

Mon Mar 9, 2015 9:09am EDT
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** Smartphone maker's U.S.-listed shares down 4.2 pct at $10.22 premarket after the first downgrade in four months

** Goldman Sachs cuts to "sell" forecasting widening losses in 2016 and 2017, rather than a return to profitability

** "In 2015, the turnaround efforts shift from cutting costs to driving revenues - a more challenging phase that we think will fall short of expectations," says Simona Jankowski, rated three stars by Thomson Reuters StarMine for stock's coverage

** Jankowski expects widening losses based on a shortfall in high-margin software and services revenue, saying the upside in hardware revenue are "empty calories" as they are not profitable

** Jankowski cuts price target on U.S. stock to $9 from $10 and to C$11 from C$12 on Toronto-listed stock

** Analyst expects a 13 pct revenue miss in Q4 on weak hardware sales due to delayed rollout of the Classic handsets

** Jankowski becomes the 13th analyst to rate the U.S. shares "sell" or lower while 20 say "hold" and only 4 have a "buy" or higher rating; their median target is $10

** Up till Friday, company's Toronto-listed shares had risen 22 pct, while its U.S.-listed had risen 6 pct in past 12 months