- BlackBerry and IBM have formed a collaboration to bring BlackBerry’s Spark platform to businesses across Canada.
“BlackBerry and IBM share a clear track record of technology advancement and broad experience in industry verticals,” said Neelam Sandhu, Senior Vice President and Chief Elite Customer Success Officer at Blackberry (BB). We will work together to bring best-in-class solutions to people across Canada at a time when stability, efficiency, and safety are most needed, and we will do so without sacrificing quality. We are ecstatic to begin this collaboration.”
IBM (IBM) will resell Blackberry’s vital event management tools, endpoint management, and security to businesses and governments as part of this collaboration.
BB’s Software and Services segment, which includes Spark and QNX, saw solid quarter-over-quarter billings growth in the fiscal fourth quarter. Spark is BlackBerry’s single endpoint security and management tool, and QNX is a Unix-like real-time operating system (RTOS).
Canaccord Genuity analyst Michael Walkley lowered the price target from $10 to $9 in March, following BB’s 4Q FY21 results, and upgraded the stock from Sell to Hold. “While we believe management has developed an effective long-term plan. And the company is beginning to turn the corner toward stronger trends. We need to see more proof of execution on the new product roadmap, evidence of emerging cross-selling opportunities, growing overall software and services revenue, and the potential for upside to our estimates before being more positive on the shares,” Walkley said. However, we agree that the fundamentals of software and services can strengthen during F2022.”
Based on two analysts recommending a Hold and two analysts recommending a Sell, analysts’ consensus is a Moderate Sell. The average analyst price goal of $8.65 suggests a possible downside of 4.7 per cent from current levels.
Financial Bloggers are 80% bullish on the stock, compared to a sector average of 67 per cent, according to TipRanks results.
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