01:03 PM EDT, 03/28/2024 (MT Newswires) -- BlackBerry (BB) faces hurdles in its cybersecurity business and delayed electric vehicle transitions, possibly curbing prospects for fiscal 2025 growth, RBC Capital Markets said Thursday in a report.

The company, set to announce fiscal Q4 results on Wednesday, may guide fiscal 2025 revenue below consensus on flat revenue from the cybersecurity business and slower growth at the Internet of Things segment,

In addition to lower EV production at domestic automakers, Chinese manufacturers also cut output, RBC said. "The cuts are another sign of the near-term headwinds facing the development of EVs and next-generation vehicle platforms," the report said.

RBC expects BlackBerry to report a 12% drop in Q4 revenue versus Q3, in line with the company's guidance, and an adjusted loss of $0.04 a share compared with a consensus estimate of a $0.03 loss.

Cost reductions may prompt BlackBerry to project fiscal 2025 adjusted EPS at breakeven versus the consensus estimate of a $0.03 loss.

RBC maintained its sector perform rating on the stock with a price target of $3.

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