BlackBerry Limited (BB) is a Sector Perform at RBC Capital Despite QNX Business Concerns

BlackBerry Limited (NYSE:BB) is one of the best debt-free penny stocks to buy right now. On November 8, RBC Capital reiterated a Sector Perform rating on BlackBerry Limited (NYSE:BB) and set a $4.50 price target. According to the research firm, the company faces near-term headwinds on the QNX business due to project deferrals and platform launch delays.

BlackBerry Limited (BB) is a Sector Perform at RBC Capital Despite QNX Business Concerns

It is one of the reasons QNX revenue grew only 7% in the third quarter, falling short of its long-term 14% compound annual growth rate. Likewise, QNX growth has trended toward the lower end of the company’s long-term target. Amid the slow growth, the company delivered its third consecutive quarter of GAAP profitability in Q3 FY26.

Non-GAAP earnings per share rose to $0.05, beating consensus estimates by 25% as revenue totaled $141.8 million. GAAP net income totaled $13.7 million, a significant $24 million improvement from the same quarter last year. The better-than-expected results came as BlackBerry made substantial strides in its strategic focus on automotive embedded systems and secure communications.

BlackBerry Limited (NYSE:BB) is a software and services company that shifted from making phones to providing intelligent security software and solutions for enterprises and governments, with a focus on the Internet of Things (IoT), cybersecurity, and embedded systems, especially in the automotive sector.

While we acknowledge the potential of BB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BB and that has 100x upside potential, check out our report about this cheapest AI stock.

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