BlackBerry Ltd Stock Forecast:
According to the predictions of eight analysts, the average target price for BlackBerry Ltd’s stock over the next 12 months is $5.17, and the average rating from these analysts is “Buy”. However, Stock Target Advisor‘s analysis of BlackBerry Ltd’s stock is “Bearish”, based on 1 positive signal and 7 negative signals. The last recorded closing stock price for BlackBerry Ltd was $3.77. Over the past week, the stock price has increased by 1.34%, but over the past month and year, it has decreased by 3.33% and 47.12%, respectively.
Analysts Coverage Change:
Morningstar maintains Blackberry Ltd. with a “Buy” rating and lowers the target price to $5 from $7 on the company’s stock.
Blackberry Ltd. News:
BlackBerry Limited (BB) has announced a new patent sale transaction with Malikie Innovations, a subsidiary of Key Patent Innovations Limited, for up to $900 million. This move will involve the sale of most of BlackBerry’s non-core patents and patent applications related to mobile devices, messaging and wireless networking, but excludes patents and applications essential to support the company’s existing core business operations and all existing revenue-generating agreements.
The transaction will help strengthen BlackBerry’s balance sheet, simplify its business and enable the company to focus on its core Internet of Things (IoT) and Cybersecurity businesses. BlackBerry will receive $170 million in cash on closing and an additional $30 million in cash by the third anniversary of closing. Also, the company will receive annual cash royalties from the profits generated from the sold patents.
The patent sale agreement is a positive step for BlackBerry, as it will allow it to focus on its core businesses while also generating substantial revenue through royalties. BlackBerry provides intelligent security software and services to enterprises and governments around the world, offering devices and software platforms for managing security, mobility and communications among hardware, programs, mobile apps and the IoT.
For fiscal 2023, BlackBerry expects total revenues of approximately $656 million, with IoT revenues likely to be around $206 million and cybersecurity revenues expected to be $418 million. However, revenues from the cybersecurity business are expected to be lower than the outlook provided during the last-reported quarter, primarily due to certain large government deals shifting to fiscal 2024.