BB stock has price target cut at CIBC

Following the company’s underwhelming Q2 results, one analyst is feeling less bullish about BlackBerry (BlackBerry Stock Quote, Chart, News, Analysts, Financials NYSE:BB)

According to the Globe and Mail October 5, CIBC analyst Todd Coupland has cut his one-year price target on BlackBerry from (US) $6.00 to $5.50, which the Globe notes is the street average estimate.

BB shares have been reeling since the report. If the stock continues its slide today it will mark eight down days out of the past nine.

On September 28, the company reported its Q2, 2024 results. BlackBerry lost $47-million on revenue of $132-million, down 21 per cent from the $168-million it posted in the same period a year prior.

“Our IoT business continues to win new designs and add royalty backlog at a strong rate, illustrating how well-positioned this business is in the medium to long term,” CEO John Chen said. “We expect a strong finish for IoT revenue this fiscal year, with the fourth quarter forecasted to be the strongest ever. Further, we are excited by the response from beta customers to our next generation QNX® Software Development Platform 8.0, and its potential to enable embedded Generative AI applications. We also expect a strong second half for revenue in our Cyber business, with a pipeline of deals that include large, mainly perpetual government opportunities that can deliver meaningful in-year revenue. Therefore, we are reiterating our full-year Cyber revenue outlook.”

At press time, shares of BlackBerry on the NYSE were down 3.7 per cent to $4.11.