Blackberry Ltd. (BB:TSX) “ChatGPT’s is a potential threat to cybersecurity”

Blackberry

BlackBerry Ltd Stock Forecast:

Based on the BlackBerry Ltd stock forecasts from 8 analysts, the average target price for BlackBerry Ltd is CAD 7.59 in the next 12 months. On average, the analysts rate the stock as a “Buy.” However, Stock Target Advisor has a “Bearish” outlook for BlackBerry Ltd, which is based on one positive signal and seven negative signals. The stock’s last closing price was CAD 5.99. It has risen by 6.58% in the past week, 35.83% in the past month, but declined by 42.13% in the past year.

Blackberry Ltd News (BB:TSX):

Blackberry Ltd, has recently released results of a research survey on the perception of IT professionals towards artificial intelligence language models like ChatGPT. The survey was conducted among 1,500 IT decision-makers across North America, the United Kingdom, and Australia and found that 51% of the respondents believed that a successful cyberattack carried out by a language model like ChatGPT is less than a year away. Moreover, 71% of the respondents believe that foreign states may already be using the technology for malicious purposes against other nations.

The research results highlight the growing concern among IT professionals regarding the potential threat posed by language models like ChatGPT to the cybersecurity landscape. Although most of the respondents believed that these models are currently being used for good purposes, 74% acknowledged their potential to cause harm. The top concern among the respondents was ChatGPT’s ability to help hackers craft more convincing and legitimate-sounding phishing emails, followed by the enabling of less experienced hackers to improve their technical knowledge and develop specialized skills, and its use for spreading misinformation.

The results also showed that the majority of IT decision-makers (82%) plan to invest in AI-driven cybersecurity solutions over the next two years, with almost half (48%) planning to make the investment before the end of 2023. This reflects the growing recognition among IT professionals that traditional signature-based protection solutions are no longer effective in providing adequate cybersecurity against an increasingly sophisticated threat landscape.

Despite the concerns, the research also revealed that IT directors are optimistic about the potential of language models like ChatGPT to enhance cybersecurity for businesses. However, 95% of the respondents believed that governments have a responsibility to regulate these advanced technologies. There is a general consensus among the respondents that technology and research professionals are likely to gain more than cybercriminals from the capabilities of language models like ChatGPT.

Analyst Coverage Change:

STA Research maintains the Buy rating for Blackberry Ltd. with a target price of $7 on the company’s stock.

Positive Fundamentals:

This company shows high market capitalization which is a strong indicator of the company’s financial stability, size, and success, and is often seen as a positive factor for investors considering putting their money into a company.

Negative Fundamentals:

This stock has high volatility and its total returns have been above median for its sector over the past 5 years, which may not be suitable for investors with low risk tolerance. The stock is also overpriced compared to its earnings and book value when compared to its peers. Additionally, the company is highly leveraged and has shown negative cashflow and free cashflow in the past four quarters. The low revenue growth is another red flag as the stock has shown below median revenue growth in the previous 5 years compared to its sector.

FA Score (Fundamental Analysis):

The fundamental analysis of Blackberry Ltd. is “Bearish” with a FA score of  1.2 out of 10, where 0 is very bearish and 10 is very bullish.

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