BlackBerry Ltd. (BB) is taking measures to align its business units and product commercialization strategies in its key markets. Additionally, the company announced changes to its management team.
BlackBerry is focusing on Software and Services growth in 2022 and is organizing around Cyber Security and Internet of Things (IoT), two of its business segments.
What’s more, the company promoted President Tom Eacobacci to BlackBerry President and Chief Operating Officer. Eacobacci will also be Acting General Manager of its Cyber Security business unit.
Furthermore, Eacobacci will help John Chen, Executive Chairman and CEO of the company, in implementing corporate business plans and strategy.
BlackBerry also appointed Mattias Eriksson as President and General Manager of its IoT business unit. Eriksson will be in charge of driving the company’s IoT platform strategy and operations.
John Chen commented, “Cybersecurity and IoT are recognized high-growth markets where BlackBerry can add tremendous value. BlackBerry is applying its world-class security expertise to address the needs of these markets.”
Chen added, “The promotion of Tom, addition of Mattias, and the alignment of our business around our key market opportunities sharpens our operational focus to unlock the company’s shareholder value.” (See BlackBerry stock analysis on TipRanks)
On March 31, Canaccord Genuity analyst Michael Walkley upgraded the stock to Hold from Sell but lowered the price target to $9 from $10.
Commenting on the company’s 4Q performance, Walkley said, “Management has created a cogent long-term strategy and the business is turning the corner towards stronger trends.”
Additionally, Walkley believes that software and services fundamentals will improve throughout 2022.
Consensus among analysts is that BlackBerry is a Moderate Sell, based on 2 Holds and 1 Sell. The average analyst price target of $8.67 implies a potential 6.7% downside. Shares have gained about 118.1% over the past year.