Blackberry's Visibility To Near-term Profitability Is Starting To Improve - Analyst Eyes Value-creation Strategies
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Paul Treiber reiterated a Sector Perform rating on BlackBerry Limited (NYSE:BB) with a price forecast of $3. BlackBerry's Q1 revenues exceeded estimates, driven by strong cybersecurity performance. The company announced $20 million in additional cost savings and plans to provide segmented financials in October. Treiber raised FY26 adj. EBITDA estimates but lowered FY25 revenue estimates slightly. BB shares are up 9.28% to $2.415.
June 27, 2024 | 6:34 pm
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RBC Capital Markets reiterated a Sector Perform rating on BlackBerry with a $3 price target. Q1 revenues exceeded estimates, driven by strong cybersecurity performance. The company announced $20 million in additional cost savings and plans to provide segmented financials in October. Treiber raised FY26 adj. EBITDA estimates but lowered FY25 revenue estimates slightly. BB shares are up 9.28% to $2.415.
The positive Q1 revenue performance and additional cost savings are likely to boost investor confidence in BlackBerry's near-term profitability. The announcement of segmented financials in October could provide further clarity and potentially lift the stock. The raised FY26 adj. EBITDA estimates also contribute positively, although the slight reduction in FY25 revenue estimates may temper some enthusiasm. Overall, the news is likely to have a positive short-term impact on BB's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100