BlackBerry shares were set to open 3% lower on Monday after it warned of a huge quarterly loss and at least 15 brokerages slashed their price targets.<\/p>\n
The only question was whether the company would be sold in one piece or in parts, analysts said.<\/p>\n
BlackBerry said on Friday it expected to report a net operating loss of almost $1 billion in the quarter ended August 31, largely due to writedowns on a mountain of unsold BB10 phones.<\/p>\n
Brokerage National Bank Financial, which believes that any recovery is very unlikely for BlackBerry, cut its price target to $5 from $8, valuing the company at about $2.6 billion.<\/p>\n
That would be a far cry from its 2008 peak of $80 billion when BlackBerry was the major player in corporate email and Apple Inc was just launching its iPhone.<\/p>\n
BlackBerry’s US – listed shares, which fell 17% on Friday and have nearly halved in value since February, were trading at $8.23 pre-market.<\/p>\n
In a note titled “Train has wrecked, what now?” analysts at Evercore Partners said BlackBerry would be worth more if its software businesses were split from its declining hardware business.<\/p>\n
The company has been losing market share as smartphones powered by software made by Apple and Google started dominating the market.<\/p>\n
Apple said on Monday it had sold about 9 million iPhone 5s and iPhone 5c models in the first three days since their launch, with demand exceeding initial supplies.<\/p>\n
BlackBerry said on Friday it sold about 3.7 million phones in the latest quarter, most of them its older models.<\/p>\n
BlackBerry’s BB10 phones, based on a new operating platform, were billed as marking the turnaround in the company’s fortunes but it has failed to gain market share.<\/p>\n
“Given the failed BB10 launches, our view is the most likely outcome is a take-over for BB,” CIBC analysts said in a note.<\/p>\n
Adding to its woes, the company postponed a weekend launch of an Android and iPhone app for its BlackBerry Messenger. Analysts say the delay further erodes customer confidence in the company.<\/p>\n
BlackBerry has previously said it was considering a sale of the company, and analysts had put the value of its parts – messaging business, patents, cash and investments – at $8 billion to $10 billion, double its current market value.<\/p>\n
Nomura analyst Stuart Jeffrey believes the weakness in the company’s performance is going to make it harder for BlackBerry to sell itself. He cut his target on the stock to $9 from $10.<\/p>\n
While BlackBerry has hired advisers to look for a buyer, analysts debated whether Canada’s one-time hi-tech champion is more valuable if sold piecemeal to competitors or private investors.<\/p>\n
“We believe BBRY needs to act quickly and decisively in coming to a conclusion with regard to any potential sale of the company and should look to sell assets to bolster its cash position,” Wells Fargo analysts said.<\/p>\n
However, Baird Equity Research analysts preferred to be contrarian, upgrading the stock to “neutral” from “underperform.”<\/p>\n
“The stock is now more likely to be driven by M&A rumors and sum-of-the-parts arguments,” it argued in a note.<\/p>\n
BlackBerry warned against consumer market retreat<\/strong><\/a><\/p>\n Huge loss for BlackBerry, BB10 sales weak<\/strong><\/a><\/p>\n BlackBerry bidders may carve up business \u2013 sources<\/a><\/strong><\/p>\n BlackBerry cuts US sales team jobs<\/a><\/strong><\/p>\n Shareholder mulls taking BlackBerry private<\/a><\/strong><\/p>\n