BlackBerry Limited (BB): A Bull Case Theory

We came across a bullish thesis on BlackBerry Limited by Polymath Investor on Substack. In this article, we will summarize the bulls’ thesis on BB. BlackBerry Limited’s share was trading at $4.3200 as of 18th June. BB’s forward P/E was 42.92  according to Yahoo Finance.

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BlackBerry, long known for its legacy in mobile devices, is undergoing a transformation that has recently attracted renewed bullish interest, particularly centered around its Internet of Things (IoT) division. The company’s Q4 results highlight the strength of its QNX-powered IoT segment, which delivered record revenue of $66 million with exceptional 83% gross margins.

This business powers embedded software in over 235 million vehicles globally and continues to benefit from the accelerating adoption of connected and autonomous vehicle technologies. Despite this robust performance, BlackBerry’s overall financials remain underwhelming due to the ongoing struggles of its cybersecurity segment, which has seen stagnating growth and margin compression.

This discrepancy between segment performance and overall valuation presents a sum-of-the-parts (SOTP) opportunity, where the high-margin, high-growth IoT unit is overshadowed by the underperforming cybersecurity division. There is growing speculation that BlackBerry could initiate a strategic separation of these two businesses to unlock shareholder value, especially with activist pressure mounting and the board now seemingly more aligned with such restructuring initiatives.

The company has already hinted at such a move in prior strategic reviews, and a formal separation or sale of the IoT business could yield a significantly higher valuation than the market currently reflects. Even in a base-case scenario where no separation occurs, the IoT division’s growth trajectory and margin profile provide a strong underpinning for a re-rating of BlackBerry shares. For equity investors, the downside appears limited given the embedded value of the IoT business, while any corporate action could serve as a meaningful catalyst for upside.

Previously, we covered a bullish thesis on BlackBerry Limited by NYCandrun in February 2025, which highlighted the company’s underappreciated positioning in embedded automotive software through QNX, the SaaS-like potential of its IVY platform, and the stabilization of its cybersecurity segment. The company’s stock price has depreciated by approximately 23% since our coverage. This is because the re-rating thesis has not yet played out due to muted IVY traction and macro headwinds. The thesis still stands as QNX continues to grow, and IVY has real adoption potential. Polymath shares a similar view but emphasizes the strategic unlock potential of a formal separation between the IoT and cybersecurity businesses.

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Disclosure: None. This article was originally published at Insider Monkey.