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BlackBerry Stock Upgraded; Canaccord Sees Growth in Cybersecurity

BlackBerry rose sharply after the software company was upgraded to hold from sell by Canaccord on growth potential in cybersecurity.
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BlackBerry  (BB) - Get BlackBerry Limited Report shares rose on Wednesday after the software company was upgraded to hold from sell by Canaccord, which kept its price target at $10.

Canaccord analyst Michael Walkley expressed enthusiasm for the company’s growth possibilities, after speaking to Chief Security Architect Ryan Permeh and Research Operations Vice President Eric Milam, according to Bloomberg.

BlackBerry shares recently traded at $10.23, up 5.8%, leaving the stock down 10% for the past six months.

In his conversations, Walkley said he learned about potential growth areas in the company’s cybersecurity segment. It’s looking toward the endpoint security market.

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To be sure, he injected a note of caution for the former dominant smartphone player.

“We believe BlackBerry is turning the corner, but we await more proof in execution on the new product roadmap, evidence of cross-selling opportunities emerging, growing overall software and services revenue, and the potential for upside to our estimates before becoming more constructive on the shares,” Walkley said.