Analyst Note| William Kerwin |
We retain our $7 fair value estimate for no-moat BlackBerry after it reported second-quarter results in line with our above-consensus expectations and maintained its outlook for fiscal 2022. BlackBerry is back to sequential growth for its cybersecurity unit, although its automotive-heavy Internet of Things business continues to be plagued by global supply constraints. We still expect a long runway of double-digit growth for BlackBerry, but expect the current challenging environment to persist through the end of the fiscal year. Shares are up roughly 7% after beating consensus on the top and bottom lines, and we continue to view shares as overvalued.