BB
The rally has a new excuse
BlackBerry is doing that thing stocks do when a fresh analyst note meets a hungry chart: it keeps climbing. RBC Capital kept a Sector Perform rating on Monday but raised its price target to $9, saying BlackBerry’s first-quarter results and updated outlook came in stronger than expected.
The market latched onto one message: this wasn’t just a small beat, it was the company’s biggest one in a year. And when a stock is already in breakout mode, even a modestly positive note can act like lighter fluid.
What RBC liked
The real headline inside the note was BlackBerry’s QNX business, which is the part of the company investors tend to squint at and say, “Okay, show me the growth.” RBC highlighted:
- QNX revenue up 26% to $72.3 million
- Adjusted EBITDA of $36.3 million versus RBC’s $19.6 million estimate
- Revenue of $152.9 million versus RBC’s $135.9 million estimate and consensus at $137.8 million
That’s the kind of beat that can change the vibe fast. RBC also pointed to development seat license revenue hitting its highest level in eight quarters, plus management’s expectation for a first Alloy Kore design win this fiscal year.
Why the stock is acting like it had three coffees
BlackBerry shares touched new 52-week highs and were up slightly on Wednesday after the move. Zoom out, though, and the stock is already up nearly 193% over the past year. That’s great until you remember momentum stocks can go from “hero” to “air pocket” pretty quickly.
A few things matter here:
- The stock is well above its moving averages, which keeps the trend intact
- RSI is deep in overbought territory, so a breather wouldn’t be shocking
- The rally now needs follow-through, not just another shiny note
Big picture
BlackBerry is no longer trading like a forgotten phone relic. It’s trading like a software turnaround story with QNX doing the heavy lifting. If execution keeps improving, the market will probably keep rewarding it. If not? The chart has enough altitude to make any stumble feel dramatic.