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BlackBerry Ltd BB

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Chip Shortage Hampering BlackBerry’s Rebound; Patent Sale Negotiations Ongoing; Maintain $7 FVE

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.

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Company Profile

Business Description

BlackBerry, once known for being the world’s largest smartphone manufacturer, is now exclusively a software provider with a stated goal of end-to-end secure communication for enterprises. The firm provides endpoint management and protection to enterprises, specializing in regulated industries like government, as well as embedded software to the automotive, medical, and industrial markets.

Contact
2200 University Avenue East
Waterloo, ON, N2K 0A7, Canada
T +1 519 888-7465
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings May 31, 2021
Fiscal Year End Feb 28, 2022
Stock Type
Employees 3,497

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