Blackberry Sales Not Even Close, Says Morgan Stanley

Blackberry Ltd BBRY shares are shrugging off a note from Morgan Stanley this morning that said sales of its software and phones are "not tracking anywhere close" to where they need to be. Share were recently at $9.85, up $0.04 today.

Based on research and conversations, Morgan Stanley says that VARs and resellers are finding Blackberry is a tough sell, even for enterprise customers. On the phone, Morgan Stanley said that as many as 8,000 Classic and Passport phones have been sold, "well below" the 2-3 million needed in FY16.

Meanwhile, Morgan Stanley said that even if Blackberry is able to stem the declines in its enterprise unit, the $500 million in software revenue is unlikely. In short, Blackberry will not "get anywhere close" to this goal.

Morgan Stanley reiterated its $7 price target and Underweight rating.