To watch: BlackBerry, Apple and Tourmaline

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What to do with the titles of BlackBerry, Apple and Tourmaline? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.

BlackBerry (BB-N, $ 9.56; BB-T, $ 12.21): analyst revises expectations

Daniel Chan of TD Securities has revised his target price for Toronto software provider BlackBerry as the sale of his patents is imminent. However, although some analysts expected such an announcement when its results were released on September 22, 2021, the company did not say anything of the sort.

It said it generated $ 175 million ($ million) in revenue in the second quarter, which is better than what analysts ($ 162 million) and TD ($ 167 million) expected. It owes this result to a $ 5 million jump in revenue from its business software licenses. Given that BlackBerry intends to divest of its patents to refocus its activities, Daniel Chan has some reservations.

He did, however, revise his target price from $ 8.5 to $ 9, as he believes that while there is little chance that she will sell her software portfolio for $ 1 billion, she should make it. more than the $ 460 million previously estimated by the analyst.

The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell short of target, however, at $ 14 million, with TD and the consensus targeting $ 30 million and $ 21 million, respectively.

Royalties from its real-time operating system QNX have suffered from the lack of a microchip again, the analyst believes, since its revenues from its Internet of Things division ($ 40 million) are below this. previously reported by BlackBerry Technology solutions, nearly $ 50 million per quarter. However, these results exceeded the forecasts of Daniel Chan, who bet on $ 37 million.

BlackBerry management has indicated that this slowdown is drawing to a close as the microchip shortage is expected to have bottomed out in the last quarter. It therefore expects a resumption of its design activities, and still relies on revenues which should be between 180 and 200 million dollars for the 2022 fiscal year, Daniel Chan report.

As predicted by the TD analyst, revenue growth for BlackBerry’s cybersecurity division was stable from the same period last year at $ 120 million. It nevertheless generated more invoices during the quarter, although its accounting rate of return for the division was the same as the previous quarter.

To remedy the situation, the Toronto-headquartered company continues to recruit to increase the size of its sales team, and has even sought out John Giamatteo, a McAfee alumnus, to lead the division. BlackBerry maintains its target in a range of $ 495 million to $ 515 million.

To view Apple’s title, click next.

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