Q: Hello 5i Team
I have noticed that Black Berry stock has started to rise in price, is it because of improved fundamentals ? Is this a company that you would recommend for a 3 year purchase?
Thank you
I have noticed that Black Berry stock has started to rise in price, is it because of improved fundamentals ? Is this a company that you would recommend for a 3 year purchase?
Thank you
5i Research Answer:
Blackberry has sold its Cylance division and is now exclusively focused on QNX. Investors like this move as it focuses the company to what it does best. That being said, the company has lost money for the past 8 years and cash flow has been negative for the last 4 years. It is expected to show good earnings growth this fiscal year. Still, it is small, risky, and expensive. Fundamentals are improving but with the divestiture it becomes even smaller. We would not get too excited it on it yet. There is still work to be done here. We would see it as a HOLD.