Canaccord Genuity analyst Kingsley Crane has maintained their neutral stance on BB stock, giving a Hold rating yesterday.
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Kingsley Crane has given his Hold rating due to a combination of factors influencing BlackBerry’s current and future performance. The company has shown a strong quarter with better-than-expected results in both revenue and earnings, particularly in its QNX segment, which has demonstrated significant growth. However, despite these positive developments, the outlook for the latter half of the year remains cautious. The guidance suggests a substantial increase, typical for BlackBerry due to seasonal factors, but management has become less conservative in their forecasts as visibility has improved.
While the QNX segment shows promise with potential double-digit growth and a shift towards a more balanced mix of automotive and GEM projects, the Secure Communications segment presents a mixed outlook. Although there are promising developments, such as traction in government sectors, the overall growth potential remains uncertain due to ongoing market challenges. The Hold rating reflects a balanced view of these opportunities and risks, with a price target set at $4.60 based on a revised sum-of-the-parts analysis that considers the company’s segment-level growth potential.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $4.50 price target.