BlackBerry (BB) stock price: what's the upside now?

12:52 pm ET, 29 Mar 2019

Disclaimer: The following bite is my perspective on BlackBerry; this is not an endorsement or a recommendation for investors to buy, sell or short the stock.  

BlackBerry (BB) shares are trading at $10.07, up 14.82% from yesterday.   The company beat the street in Q4 with a net profit of $0.08 per share versus the $0.06 loss last year, while its software and services grew +14% year-on-year. 

Those are really good results.  But is Blackberry stock still a good trade at this price level?  Or should you sell it now?    

Let's take a look at the optimist's view first. 

Bulls' View

1. BlackBerry has transformed itself as an enterprise.  It's not a device player any longer.  With more than $1 billion in software revenue coupled with rising license fees, Blackberry is positioned for a solid future.  

2.  Blackberry is positioned on two attractive markets: Internet of Things (IoT) and security.  Security has become increasingly important to thwart data theft.  IoT is a rapidly growing market that connects disparate devices and systems.  Both markets are growing at a double-digit percentage.   

3.  I find the management team very competent.   BlackBerry delivers the top line number investors expect to see.  Also, there is no confusion around what the future of BlackBerry is.  

Bears' View

1.  I think BlackBerry Limited (BB) forward P/E ratio is rather high at 52.  It's higher than industry peers’ P/E ratio.

2.  I don't see BlackBerry's path to becoming a large cap (i.e., a much larger company).  Mr. Chen is a competent CEO.  However, BlackBerry cannot successfully compete against the giants in the enterprise software and communications industries.  In my mind, BlackBerry will either stay a niche player, or be bought by a larger competitor.    

3.  I don't see a huge upside for the stock.  BlackBerry Limited (BB) average analyst price target is barely above its current price.

The Verdict

I don't own BlackBerry stock and I am going to sit out this rally.  But, given the pros and cons above, I would have held it if I had owned it.  

For the latest price and information on BlackBerry, please visit Finstead and search for "BB analysis", "BB stats" or "BB news".

BlackBerry Limited (BB) earnings: will the rally last?

6:15 pm ET, 20 Dec 2018

BlackBerry Limited (BB) shares are trading at $7.58, up 3%. The company announced its quarterly earnings results today before the market opens--and it beat analysts’ forecasts.  It is also signaling its reinvention as a software company is taking hold.  Will today's rally last?

BlackBerry turned a profit of $59 million in the last quarter, which is a huge improvement compared to a loss of $275 million a year earlier. It earned five cents US a share, beating the average analyst estimate of two cents.  BlackBerry recorded $228 million in revenue, compared with the average analyst projection of $216 million.

Blackberry has recently announced an intention to buy an AI-based cybersecurity company Cylance for $1.4 billion.  Cylance's client base includes over 100 Fortune 500 clients.

Investors are showing interest in the company as they feel that the Cylance deal will be a game-changer. On the other hand, a few bearish investors worry about decelerating revenue growth. Last quarter’s revenue fell 10% to $214 million and earnings per share came at 4 cents compared to 5 cents for the same period last year.

What is the sentiment towards the BB stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is negative;
  • The long-term sentiment (9-12 months) is trending negative.  

Over the last month, BlackBerry Limited (BB) returned -11.05%. 

BlackBerry Limited (BB) forward P/E ratio is 54.94, and it’s high compared to its industry peers’ P/E ratios.

BlackBerry Limited (BB) average analyst price target ($11.57) is 45.17% above its current price ($7.97).

For the latest price and information on BlackBerry Limited, please visit Finstead and search for "BB price" or "BB news".

Blackberry Ltd (BB) stock price: here is the outlook

8:47 am ET, 26 Sep 2018

BlackBerry Limited (BB) shares are trading at $10.30.  The company is expected to publish its Q2 fiscal 2019 results on Friday, September 28. What's driving BB stock price? What's BB stock price forecast?

Blackberry stock produced a return of over 60% in 2017, but it did not keep up with investors' aspirations this year. The company has changed its business model and now reports in three segments: enterprise software and services, technology solutions, and licensing (a.k.a., the IP segment).

Some investors are bullish about the stock as they expect strong future growth in the software and services segment. On the other hand,  many other investors are losing patience with the company because of the inefficient use of cash, and believe that management needs to clearly outline how it plans to use cash in the next earnings call.  Revenue fell 11% to $217 million in the last quarter and earnings per share came at $0.03.

The company is scheduled to release the second-quarter fiscal year 2019 results before market open on September 28, 2018. For the upcoming report, analysts expect the company to earn $0.01 per share on revenue of $209.38 million. The company beat analyst estimates in the previous four quarters.

What is the sentiment towards the BB stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, BlackBerry Limited (BB) returned +0.4%.

BlackBerry Limited (BB) forward P/E ratio is 68.67, and it's high compared to its industry peers' P/E ratios.

BlackBerry Limited (BB) average analyst price target ($11.99) is 18.6% above its current price ($10.11).

For the latest price and information on BlackBerry Limited, please visit Finstead and search for "BB price" or "BB news".

BlackBerry Limited (BB) Stock Guide

Updated at: 12:45 am ET, 19 Sep 2020

Before we start: if you're looking for BB stock price, you can quickly find it out by visiting Finny and typing "BB quote". If you're looking for a quick scoop on BB stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "BB". You'll get all this info in one place. Or you can just type "BB news" to get the latest stock news.

Looking to buy or sell BlackBerry Limited (BB)? Interested in getting the full scoop on BB, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this BB stock guide, we'll address key questions about BB, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are BB earnings?
2. What is BB stock forecast (i.e., prediction)?
3. BB buy or sell? What is BB Finny Score?
4. What are the reasons to buy BB? Why should I buy BB stock?
5. What are the reasons to sell BB? Why should I sell BB stock?
6. What are BB key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are BB earnings?

BB trailing 12-month earnings per share (EPS) is -$1.39.

Analyst Predictions

2. What is BB stock forecast (i.e., prediction)?

Based on BB analyst price targets, BB stock forecast is $5.72 (for a year from now). That means the average analyst price target for BB stock is $5.72. The prediction is based on 16 analyst estimates.

The low price target for BB is $5.00, while the high price target is $7.50.

BB analyst rating is Hold.

Analysis

3. BB buy or sell? What is BB Finny Score?

#{finnyScore:40}Our quantitative analysis shows 4 reasons to buy and 6 reasons to sell BB, resulting in Finny Score of 40.

4. What are the reasons to buy BB? Why should I buy BB stock?

Here are the reasons to buy BB stock:

  • BlackBerry is widely recognized for productivity and security innovations. The company delivers one of the most secure end-to-end mobile enterprise solutions in the market through a broad portfolio of products and services. It offers an end-to-end software and services platform for the Enterprise of Things.
  • Blackberry is positioned on attractive market segments: IoT (Internet of Things) and security. Security has become increasingly important to thwart data theft.
  • BlackBerry has inked a strategic partnership with Baidu on a self-driving car project. The deal allows Baidu to use its QNX Hypervisor 2.0 software, which is designed for complex in-vehicle computer systems in its open-source self-driving platform, Apollo. BlackBerry has also entered a multi-year agreement with Jaguar Land Rover to collaborate and develop technology for the latter’s next-generation vehicles.
  • Blackberry has proven it has transformed itself into a software entity and has completed its overhaul. With more than $1B in software revenue coupled with rising license fees, Blackberry is positioned for a solid future.
  • BB profitability is improving. The YoY profit margin change was 135.59 percentage points. See BB profitability chart.
  • BB Price/Book ratio is 1.62, which is low compared to its industry peers’ P/B ratios. See BB forward Price/Book ratio chart.
  • BB average analyst price target ($5.72) is above its current price ($4.86). See BB price target chart.
  • BB cash to debt ratio is 1.23, higher than the average industry (0.18) and sector (0.17) cash to debt ratio. See BB cash to debt chart.

5. What are the reasons to sell BB? Why should I sell BB stock?

Let's look at the reasons to sell BB stock (i.e., the bear case):

  • With increasing global exposure, BlackBerry does face the risk of adverse foreign exchange fluctuations. Apart from adverse foreign currency related movements, high debt levels are also concerning. The company exited fiscal 2018 with long-term debt of $782 million, much higher than the $591 million at the end of fiscal 2017.
  • On a P/E (price-to-equity) basis, shares of BlackBerry appear to be overvalued. The stock is currently trading above the industry levels
  • BB quarterly revenue growth was -16.60%, lower than the industry and sector average revenue growth (0.91% and 0.89%, respectively). See BB revenue growth chart.
  • BB forward P/E ratio is 42.92, which is high compared to its industry peers’ P/E ratios. See BB forward P/E ratio chart.
  • BB Price/Sales ratio is 3.11, which is high compared to its industry peers’ P/S ratios. See BB forward Price/Sales ratio chart.
  • BB short share of float is 5.82%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See BB short share of float chart.
  • BB short interest (days to cover the shorts) ratio is 9.1. The stock garners more short interest than the average industry, sector or S&P 500 stock. See BB short interest ratio chart.
  • BB Enterprise Value/Revenue multiple is 2.94, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See BB Enterprise Value/Revenue chart.

Key Stats

6. What are BB key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for BB:

Metrics BB
Price $4.60
Average Price Target / Upside $5.72 / 24.35%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Communication Equipment
Sector Technology
Number of Employees 3,288
Market Cap $3.11B
Forward P/E Ratio 42.92
Price/Book Ratio 3.11
Revenue (TTM) $999M
YoY Quarterly Revenue Growth -16.60%
Profit Margin -75.38%

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