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BlackBerry Gets Mixed Analyst Reaction After Revenue Lags

BlackBerry shares fell after it reported fourth-quarter revenue of $210 million, trailing the analyst consensus forecast of $245 million.
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BlackBerry  (BB)  shares fell Wednesday after the Canadian security software provider reported fourth-quarter revenue that lagged Wall Street's estimates. 

Analysts' reaction to the numbers was mixed.

Revenue registered $210 million for the quarter, down from $282 million a year earlier. The latest number trailed the FactSet analyst consensus of $245 million.

The Waterloo, Ontario, company's shares recently traded at $8.53, down 8.7%. The stock has slumped from its 52-week high near $29, set two months ago.

Canaccord Genuity’s T. Michael Walkley lifted his rating to hold from sell, though he lowered his price target to $9 from $10 to reflect recent market activity. He'd downgraded the stock in mid-February.

["The] software and services fundamentals should improve throughout fiscal 2022,” he wrote in a commentary. 

“Should management reach a deal to sell the licensing business, ... this could help unlock value and provide a capital infusion to drive accelerated software and services growth.”

To be sure, “while we believe management has created a cogent long-term strategy and the business is turning the corner towards stronger trends, we await more proof … before becoming more constructive on the shares,” Walkley said.

Raymond James analyst Steven Li has a market-perform rating. He lifted his price target to $9.50 from $8.

RBC analyst Paul Treiber assigned BlackBerry an underperform rating with a $7.50 price target. 

The company’s valuation already accounts for the core software operations and estimated value of BlackBerry’s patents, he said, according to Bloomberg.

TD Securities analyst Daniel Chan has a hold rating and an $8.50 target.