CIBC Upgrades BlackBerry to Outperform from Neutral

CIBC Upgrades BlackBerry to Outperform from Neutral

BlackBerry Limited (NYSE: BB), the Canadian smartphone maker, received a significant boost on [NUMBER:1] when CIBC Capital Markets upgraded its rating on the stock from Neutral to Outperform [1]. This upgrade came after the company's disappointing earnings reports earlier in the year, which left its shares down 19.7% for 2018, and 6.7% over the past month [1].

The analyst behind the upgrade, Todd Coupland, set a price target of $14 on the stock, implying a potential upside of 56% [1]. This upgrade comes after several downgrades and neutral ratings from other analyst firms, such as RBC Capital, Baird, and TD Securities [NUMBER:2]. However, the consensus price target for BlackBerry from these firms is $3.75, which implies a more modest upside of 9.57% [NUMBER:2].

Despite the recent earnings disappointments and negative sentiment surrounding the stock, BlackBerry has been making strides in other areas. For instance, the company's Internet of Things (IoT) subsidiary, BlackBerry Radar, has been gaining traction in the market, with the potential to generate significant revenue for the company [1]. Additionally, the company's security software business has been growing, driven by the increasing demand for cybersecurity solutions [1].

In conclusion, the upgrade of BlackBerry to Outperform by CIBC Capital Markets provides a positive outlook for the stock, with a potential upside of 56%. However, it is important to note that the stock has experienced significant volatility in the past, and investors should exercise caution when making investment decisions based on a single analyst upgrade.

References:
[1] Seeking Alpha. BlackBerry Boosted by CIBC Shares Plus 2.5%. https://seekingalpha.com/news/3410870-blackberry-boosted-cibc-shares-plus-2_5-percent
[2] Benzinga. BlackBerry Ltd (BB) Analyst Ratings. https://www.benzinga.com/quote/BB/analyst-ratings