BlackBerry Limited (BB) Outperforms Estimates but RBC Sticks With Sector Perform

BlackBerry Limited (NYSE:BB) is among the best fundamentally strong penny stocks to buy according to analysts. On December 19, RBC Capital maintained a ‘Sector Perform’ rating on BlackBerry Limited (NYSE:BB), with an unchanged price target of $4.50, which suggests an upside potential of approximately 19%. This follows the company’s third-quarter results, in which it exceeded not only RBC’s projections but also consensus estimates.

Although the outperformance was attributed to exceptional revenue from the company’s Secure Communications business rather than consistent growth across all its business segments, RBC highlighted that the company’s QNX platform appears to be gaining momentum.

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The fourth-quarter guidance reflects a declining year-over-year growth rate from its previous double-digit pace, resulting in RBC reaffirming a neutral stance, citing its view that BlackBerry Limited (NYSE:BB) shares are “fairly valued relative to growth.”

In the third quarter, BlackBerry Limited (NYSE:BB) delivered an EPS of $0.05, 25% higher than the analyst guidance of $0.04, and a revenue of $141.8 million, surpassing the forecasted $135.6 million. Looking ahead, management expects revenue to be between $138 million and $148 million in the fourth quarter, and between $531 million and $541 million for FY26. What’s even more interesting is that the company anticipates continued double-digit growth in its QNX business, driven by widening opportunities in the automotive and robotics markets.

BlackBerry Limited (NYSE:BB) is a Canadian provider of intelligent security software and services to both enterprises and government organizations. Incorporated in 1984, the company operates through three segments: Secure Communications, QNX, and Licensing.

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Disclosure: None.