BlackBerry price target chopped at Raymond James

Following the release of the company’s fourth quarter results, Raymond James analyst Steven Li has trimmed his price target on BlackBerry (BlackBerry Stock Quote, Chart, News, Analysts, Financials TSX:BB).

On April 3, BB reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted Adjusted EBITDA of $21.0-million on revenue of $173.0-million.

“BlackBerry delivered a solid finish to the fiscal year, setting a number of new records in the process,” said CEO John J. Giamatteo. “Despite industry delays to automotive software development programs, our IoT division delivered its strongest ever quarter for revenue, as well as its best year for adding new QNX royalty backlog from design wins that resulted in 27-per-cent year-over-year growth to approximately $815-million. We also took small, but important steps forward for the cybersecurity division, with ARR stabilizing and even increasing by 3 per cent sequentially. At a corporate level, we are making good progress with efforts to both separate the divisions and drive towards profitability, and operating cash usage more than halved sequentially this quarter.”

As reported in the Globe and Mail April 4, Raymond James analyst Steven Li maintained his “Market Perform” rating on BlackBerry while cutting his price target from $6.50 to $5.50.

“Cyber ARR [annual recurring revenue] finally stabilizes after consecutive q/q decline since 2Q22 but F2025 guide below,” Li wrote. “Cyber expected to decline again in F2025 (down 5 per cent year-over-year at the mid point) while IoT/QNX fares a little better (up 6 per cent y/y at mid point, but slower than previous expectations of teens+ growth).”

At press time, shares of BlackBerry on the TSX were up 7.3 per cent to $4.09.