In a report released yesterday, Kingsley Crane from Canaccord Genuity maintained a Hold rating on BlackBerry, with a price target of $4.60.
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Kingsley Crane’s rating is based on a combination of factors that reflect both the potential and challenges facing BlackBerry. The company is experiencing significant growth in its QNX segment, particularly in General Embedded deployments, which management describes as a ‘rocketship.’ This growth is supported by BlackBerry’s strong brand equity and extensive patent portfolio, which are key drivers of value for the business.
However, while the Secure Communications segment offers unmatched security and value, especially for government clients, it is characterized by slower growth compared to other areas. Additionally, the company’s financial profile has been transformed following the divestiture of the Cylance business, with a substantial backlog in the QNX segment serving as a long-term revenue generator. Despite these positive aspects, the overall growth prospects and financial metrics suggest a cautious approach, leading to a Hold rating for the stock.