UPDATE: Hudson Square Research Downgrades BlackBerry Following Disappointing Results

In a report published Monday, Hudson Square Research analyst Daniel Ernst downgraded the rating on BlackBerry (NASDAQ: BBRY) from Hold to Sell, but reiterated the $5.00 price target.

In the report, Hudson Square Research noted, “On Friday 12/20 Blackberry reported significantly worse than expected results, while the shares rose on positive response for plans to focus more on enterprise and offload consumer/emerging market hardware design to new manufacturing partner Foxconn. However, with service revenues (down 36% Y/Y) accounting for the majority of profit potential, and with an uncertain path for converting enterprise customers to a material per user recurring fee, and with continued cash burn, we are less convinced, and return our rating to Sell from Hold.”

BlackBerry closed on Friday at $7.22.