Dutch Police Say They’ve Cracked BlackBerry Ltd (BBRY) PGP Devices – Stock Falls

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BlackBerry Ltd (NASDAQ:BBRY) is one company you can usually trust when it comes to security — at least that is what we have thought up until now. Shares of BlackBerry Ltd (NASDAQ:BBRY) stock are trading down today after Dutch investigators have confirmed that they have been able to read encrypted messages which were sent on Blackberry’s supposedly secure PGP devices.

This could be a blow to BlackBerry Ltd (NASDAQ:BBRY) who uses security as one of their selling points. While this may be a good thing for Dutch police, it’s potentially a bad thing for investors of Blackberry as well as criminals who fequently use these devices to transfer encrypted messages.

“We are capable of obtaining encrypted data from BlackBerry PGP devices,” Tuscha Essed, a press officer at the Netherlands Forensic Institute (NFI), wrote to Motherboard in an email.

BlackBerry Ltd (NASDAQ:BBRY) isn’t commenting much on this news.

“We can’t comment on this claim as we don’t have any details on the specific device or the way that it was configured, managed or otherwise protected, nor do we have details on the nature of the communications that are claimed to have been decrypted,” a spokeswoman told the BBC.

The stock is down 1.93% or $0.14 following the news, hitting $7.37 per share. Approximately 7.73M shares traded hands. BBRY shares have declined 21.01% since June 8, 2015 and are currently downtrending. It has underperformed the S&P500 by 13.52%.

From a total of 14 analysts covering Blackberry (NASDAQ:BBRY) stock, 0 rate it a “Buy”, 2 a “Sell”, and 12 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $9 while the lowest target price is $6. The mean of all analyst targets is $7.63 which is 3.53% above today’s ($7.37) stock price. Blackberry was the topic of 21 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. Imperial Capital maintained shares on December 22 with a “In-Line” rating. Canaccord Genuity maintained shares with a”Hold” rating and a $8 target share price in their report from a September 21. RBC Capital Markets maintained BBRY stock in a recent report from December 21 with a “Sector Perform” rating. Morgan Stanley upgraded the rating on July 28. Morgan Stanley has a “Equal Weight” rating and a $7 price target on shares. Finally, Sterne Agee CRT initiated the stock with a “Neutral” rating in a report they issued on a September 29.

BlackBerry Limited is a well-known provider of mobile communications and services. The company has a market cap of $3.96 billion. The Firm is engaged primarily in the provision of the BlackBerry wireless solution, consisting of smartphones, service and software. It has 120.23 P/E ratio. The Company’s four areas of business are Devices business, Enterprise Services, BlackBerry Technology Solutions (BTS) business and Messaging.

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