BlackBerry's FY25 Revenue Guidance May Fall Short Of Expectations - Analyst Flags Weakness In Cybersecurity Unit
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Paul Treiber maintains a Sector Perform rating on BlackBerry Limited (NYSE:BB) with a price target of $3, citing concerns over its Cybersecurity unit and potential shortfalls in FY25 revenue guidance. Despite expected cost reductions leading to a possible breakeven FY25 adjusted EPS, challenges in the Cybersecurity segment and delayed EV transitions could impact revenue. The fourth-quarter forecast includes a 12% sequential decline in revenue but a record $64 million in IoT revenue. Cybersecurity revenue is expected to drop 25% sequentially to $85 million. The report is scheduled for April 3 after market close.

March 28, 2024 | 7:26 pm
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BlackBerry's FY25 revenue guidance may not meet expectations due to issues in its Cybersecurity unit and EV transition delays, despite potential breakeven FY25 EPS from cost reductions.
The analyst's concerns over BlackBerry's Cybersecurity unit and the impact of delayed EV transitions on IoT growth suggest potential revenue shortfalls. Despite the possibility of breakeven EPS due to cost reductions, these challenges are likely to negatively impact investor sentiment and BlackBerry's stock price in the short term.
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IMPORTANCE 90
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