BlackBerry: Strategic Review Offers Hope of Exit From Cybersecurity Woes

We maintain our $4.90 per share fair value estimate for BlackBerry after the firm’s board announced a strategic review on May 1. In our view, a strategic review is a welcome development following years of underperformance for the firm’s cybersecurity business. We reiterate our view that the QNX business is healthy, competitive, and primed for robust growth, while the cyber business is a market laggard losing share. Shares popped 8% following the news, but we continue to guide investors toward moatier, lower-uncertainty names in software.