Analyst Note| William Kerwin |
No-moat BlackBerry reported fiscal first-quarter results in line with our expectations, and we’re maintaining our $7 fair value estimate. BlackBerry’s discussions with an undisclosed party on selling a significant chunk of its patent portfolio are ongoing, and management said work on a definitive agreement has begun. Without any details of deal terms, we continue to model as if the sale will not go through, inclusive of hampered licensing revenues in fiscal 2022 due to slower licensing activities. We continue to view shares as fundamentally overvalued, especially following the steep price appreciation of early June spurred by online message forums like Reddit.