BlackBerry Analyst Targets Split as QNX Strength Meets Secure Communications Caution

Simply Wall St··CAUS·Read original
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Summary · why it matters

BlackBerry's analyst price targets have diverged, with one firm raising its fair value estimate from CA$11.96 to CA$12.71 while another cut its target to US$9.50 from US$10.30. Canaccord pointed to QNX as the main pillar of the BlackBerry story, highlighting record Q2 revenue of $80.3M and an 87% gross margin in that segment, and noted that BlackBerry lifted its FY27 QNX revenue guidance to $320M and secured a first Alloy Kore design win that adds more than $100M to the royalty backlog. Despite that strength, Canaccord cut its price target to US$9.50 from US$10.30 and kept a Hold rating, citing continued weakness in Secure Communications. RBC Capital maintained a Sector Perform rating and a US$9 price target, expecting a healthy Q2 update with revenue, EBITDA, and EPS possibly slightly exceeding its own and street estimates, but flagging that sentiment could be sensitive to commentary on the timing of Alloy Kore design wins and progress in physical AI and GEM. The fair value revision also lifted the revenue growth assumption from 9.41% to 9.55%, raised the net profit margin from 18.39% to 21.15%, lowered the future P/E from 43.53x to 37.86x, and edged the discount rate down from 7.83% to 7.81%.

Impact on assets 2

Information Technology▲
BlackBerry Ltd
BB
▲ PositiveCapitalDemandrelevance

Analyst price targets diverge: one firm raised fair value to CA$12.71 while Canaccord cut its target to US$9.50 and RBC kept US$9, reflecting mixed valuation views.

Financials▲

Off-coverage companies 1

Canaccord Genuity Group Inc.i
Private± MixedCapitalrelevance

Canaccord is named as the firm that raised its fair value estimate but cut its BlackBerry price target to US$9.50 with a Hold rating; the article reports its analyst action, not a company-specific development.