BlackBerry’s Pre-Empted Q4 Remains Disappointing—Even if Not Surprising; Maintain $4.90 FVE

We maintain our $4.90 fair value estimate for no-moat BlackBerry shares after the firm reported fiscal fourth-quarter results. The firm had given a negative earnings warning at the start of March that led us to lower our valuation, and there were no surprises in the official results. The cybersecurity business sank sales, but the automotive business remains positive, in our view. Guidance was relatively positive, but doesn’t reflect a strong inflection. We continue to see BlackBerry as a stock that, while undervalued, will require immense patience from investors for a cybersecurity business that has yet to turn the corner. We recommend seeking moatier and lower uncertainty software names in our coverage.