UPDATE: Canaccord Genuity Reiterates Sell Rating, Lowers PT on BlackBerry Following Disappointing Q1/F2014 Results

In a report published Monday, Canaccord Genuity analyst T. Michael Walkley reiterated a Sell rating on

, but lowered the price target from $9.00 to $8.00. In the report, Canaccord Genuity noted, “BlackBerry reported disappointing Q1/F2014 results with sales of $3.1B and pro forma LPS of $(0.13) that were below our $3.2B/$0.01 estimates and well below consensus of $3.4B/$0.07. Despite shipping the Q10 and Z10 smartphones during the quarter, total device unit sales of 6.8M were below our 7.0M estimate and even below Nov'12 quarter unit sales prior to the BB10 platform launch. Further, rapidly declining high-margin service revenue combined with higher operating expenses to support the BB10 platform resulted in gross and operating margins below our expectations. Given the weak results and outlook, our bearish long-term thesis remains unchanged. We reiterate our SELL rating and lower our price target to $8 due to our decreased long-term service revenue assumptions.” BlackBerry closed on Friday at $10.46.