Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) disappointed investors and analysts greatly on Friday, and shares of the company’s stock have taken a nosedive as a result. The stock lost almost 28 percent of its value on Friday and another 5 percent in premarket trading on Monday. Analysts at Societe Generale issued a report this morning downgrading the stock in light of the company’s weak quarterly results.

BBRY Blackberry Research in Motion

Research In Motion Ltd (BBRY) Downgrade

Societe Generale analysts Andy Perkins and Peter Knox issued a report this morning explaining why they downgraded the stock. They said that although thinks appear to be improving at Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB), the recovery is going much slower than they had hoped. They note that their supply chain checks indicating much higher BlackBerry 10 shipments than what was reported appear to have been correct, except that the handsets went into inventory instead of being shipped out.

The analysts said it’s uncertain whether the increased inventory is because the Finnish handset maker is stocking up ahead of future product launches or whether the company’s management’s expectations were “running ahead of reality.” Like other analysts, they also note that it’s unclear just how many of the 2.7 million units are still in the channel.

Research In Motion Ltd (BBRY)’s Race

Perkins and Knox said it looks like now Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) is in a race to find a profitable sales level, which they estimate to be around 10 million or more BlackBerry 10 units per quarter. The company has to find that level before it runs through its $3.1 billion in cash.

The analysts slashed their earnings per share estimates for the Blackberry maker to indicate losses for fiscal year 2014. They also lowered their earnings per share estimates by more than 80 percent for the company’s fiscal year 2015.

 Cuts For Research In Motion Ltd (BBRY)

The analysts said they lowered their DCF-based valuation from $17 to $11.5 and downgraded Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) from buy to hold. They note that the BlackBerry Q5 handset will be released this quarter and that more information will be revealed about the BlackBerry Q10 and its potential success by the time the company’s next earnings report rolls around.