Image Source: Pixabay

Canaccord Genuity analyst T. Micahel Walkley downgraded BlackBerry (BB) to Sell from Hold with an unchanged price target of $10 following the company's fiscal Q1 results.

Should BlackBerry reach a deal to sell its licensing business, the value could be unlocked and the capital infusion could drive accelerated software and services growth, Walkley tells investors in a research note. The analyst believes the business is "turning the corner towards stronger trends" but awaits more proof of execution on the new product roadmap.

He cites valuation for the downgrade with the stock well above the price target following the recent rally. BlackBerry closed Thursday down 4% to $12.68.