Shares of BlackBerry (BBRY) retreated another 2% Wednesday morning after Citigroup (C) issued a “sell” rating on the struggling smartphone maker due to a lack of options for a turnaround.
The bearish analyst research underscores the extremely difficult position BlackBerry finds itself in due to bleeding cash, a depleted market position and a continued brain drain.
“We see no clear-cut strategy, simple or otherwise, to help BBRY out of the strategic box it finds itself in,” Citi analyst Ehud Gelblum wrote in a note issued Tuesday afternoon.
Gelblum assumed coverage with a “sell” rating on the Canadian smartphone maker and set a $4 price target, which represents a 33% plunge from the company’s Tuesday close at $5.97.
Read also:
Tech stocks: BlackBerry dips on down rating (USA TODAY)
BlackBerry Coverage Initiated by Analysts at Citigroup Inc. (BBRY) (WKRB News)
BlackBerry: Citi Cuts to Sell; Shut-Down Would Eat All its Cash (Barron’s (blog))
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