Business & Investment

Do I need to buy a BlackBerry (TSX: BB) after a recent pullback?

BlackBerry (TSX: BB)(NYSE: BB) This year it took investors to volatile vehicles. The rally began with the company announcing a major update, but many experts said that retailers on social media platform Reddit promoted a parabolic move, raising the company’s share price to $ 36 on January 27. I believe it pushed it to a high. The company’s share price fell 58.9% to $ 14.78. Despite the decline, the company is still trading 75.1% higher this year. So should you buy stocks at these levels? First, let’s take a look at the growth outlook of the company.

BlackBerry Growth Outlook in the Automotive Sector

BlackBerry’s QNX real-time operating system runs on more than 175 million vehicles and is cliented by many good OEMs (Original Equipment Manufacturers).Meanwhile, the company cooperated with Amazon A web service for developing and selling IVY, an intelligent vehicle data platform. Modern vehicles consist of their own set of unique hardware and software components. These components generate data in a unique and specialized format, creating the challenge for developers to quickly bring new solutions to market.

Meanwhile, BlackBerry’s IVY platform addresses these challenges by applying machine learning to these data points to generate predictive insights and inferences, enabling automakers to quickly monetize new in-vehicle applications. I want to do it.

BlackBerry is also targeting China, the world’s largest EV market, by expanding its partnership three years ago. Baidu. The new agreement will allow Baidu’s high-resolution maps to run on BlackBerry’s QNX Neutrino real-time operating system, helping Chinese automakers produce the next generation of connected self-driving cars.

Other growth prospects

Apart from the automotive sector, BlackBerry is strengthening its position in the cybersecurity and endpoint management market. The recent launches of the Spark Suite and Cyber ​​Suite platforms have received positive feedback and have helped to attract a large number of good customers. As the world moved to working from home and shopping online, the demand for its services was only increasing.

In addition, the company announced that it has sold 90 patents on smartphone technology. Huawei In December, the messaging patent proceedings were also settled. Facebook.

Evaluation and analyst recommendations

With recent stock price cuts, BlackBerry valuations have returned to a fascinating territory. Currently, the company trades the price-to-book value ratio and the price-to-book value ratio in multiples of 4.8 and 2.4, respectively.

Analysts, on the other hand, don’t seem optimistic about the company. Of the nine analysts covering BlackBerry, five gave a “hold” rating and four analysts gave a “sell” rating. The consensus price target is $ 4.86, representing a potential decline of over 67%.

On January 26, RBC Capital Markets downgraded its share price from “sector performance” to “underperformance” amid soaring stock prices.So report According to BNN Bloomberg, RBC’s Paul Treiber said the basic outlook remains the same, and the sale of patents and improvements in the QNX division do not justify the company’s share price surge.

Conclusion

BlackBerry has expanded its customer base by introducing innovative products and services. It’s also encouraging to get a significant percentage of our revenue from regular sources. On the other hand, BlackBerry fluctuations can last for several days. However, Investors with a term of 3 years or more can buy stock for a good return Given its promising growth prospects and attractive valuations.


John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors. Randi Zuckerberg, a former Facebook market development director and spokeswoman and sister to CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. David Gardner I own shares in Amazon, Baidu and Facebook. Tom Gardner I own shares in Baidu and Facebook. Motley Fool owns and recommends shares in Amazon, Baidu and Facebook. Motley Fool recommends BlackBerry and BlackBerry and recommends the following options: A long call of $ 1920 in January 2022 on Amazon and a short call of $ 1940 in January 2022 on Amazon. A stupid contributor, Rajiv Nanjapla, does not have a position in any of the shares mentioned.

Do I need to buy a BlackBerry (TSX: BB) after a recent pullback?

https://www.fool.ca/2021/02/03/should-you-buy-blackberry-tsxbb-after-its-recent-pullback/ Do I need to buy a BlackBerry (TSX: BB) after a recent pullback?

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