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On Thursday, Canaccord Genuity adjusted its price target for BlackBerry Limited (NYSE:BB) shares, bringing it down to $4.25 from the previous $4.75, while continuing to recommend a Hold rating on the stock. The adjustment comes as BlackBerry’s stock trades at $3.39, having declined over 14% in the past week. According to InvestingPro data, the stock’s relative strength index suggests oversold territory, while analyst targets range from $3.60 to $6.00.
BlackBerry, known for its strategic initiatives, has shown an improved outlook for the remainder of the calendar year 2025, with streamlined operations creating opportunities for both organic and inorganic investments. However, InvestingPro analysis reveals the company’s current financial health score as weak, with negative EBITDA of $10 million in the last twelve months. Despite these challenges, analysts predict the company will return to profitability this year, with an EPS forecast of $0.02 for fiscal year 2025.
The company’s QNX backlog, valued at approximately $865 million, is seen as a substantial source of potential revenue in the years ahead. However, there is limited clarity on when this will translate into significant growth for the Internet of Things (IoT) division. This uncertainty is exacerbated by the current unpredictability surrounding automotive tariffs. BlackBerry’s management has expressed cautious optimism, suggesting that the lower end of the QNX revenue guidance at $250 million could be a conservative estimate, even amid recent cautious statements from automotive industry leaders.
BlackBerry’s QNX revenue in fiscal year 2025 was less than half driven by North American markets, indicating a diversified global presence. Additionally, the company is tapping into the general embedded market, which includes sectors like medical, industrial automation, and robotics, and accounted for 18% of QNX revenue in FY25.
In summary, while acknowledging BlackBerry’s improved business operations and potential for growth, Canaccord Genuity has revised its valuation of the company. The new price target of $4.25 reflects a sum-of-the-parts analysis that takes into account both the growth potential of the company’s segments and the fundamental improvements made thus far. For deeper insights into BlackBerry’s valuation and growth prospects, InvestingPro subscribers can access comprehensive financial analysis, including 8 additional ProTips and detailed Fair Value calculations based on multiple valuation methods.
In other recent news, BlackBerry Limited reported fourth-quarter earnings that exceeded analyst expectations, posting adjusted earnings per share of $0.03, surpassing the projected $0.02. The company also achieved revenue of $141.7 million, which was higher than the anticipated $132.2 million, showing a notable improvement from the same period last year. Despite the strong quarterly performance, BlackBerry’s forward guidance for the upcoming fiscal year fell short of expectations. The company projected first-quarter revenue between $107 million and $115 million, below the analyst consensus of $128.4 million. For the full fiscal year 2026, BlackBerry expects revenue in the range of $504 million to $534 million, which is also less than the Street’s estimate of $550.6 million. The company reported growth across its business segments, with QNX revenue increasing by 6% sequentially to $65.8 million, and Secure Communications revenue surpassing guidance at $67.3 million. Licensing revenue also exceeded expectations at $8.6 million. BlackBerry’s cash position saw a significant improvement, with total cash and investments rising by $144 million to $410 million, partly due to proceeds from the sale of Cylance to Arctic Wolf. Despite these positive results, investor focus on the weaker guidance contributed to a slight decline in share price following the earnings announcement.
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