09:16 AM EDT, 06/20/2025 (MT Newswires) -- BlackBerry's (BB) "conservative" guidance has set the bar low for fiscal Q1 earnings and the company's valuation is likely to remain discounted, pending improved visibility to sustained growth, RBC Capital Markets said in a Friday note.

The company's fiscal Q1 results could exceed RBC's and consensus estimates, as the macro environment has been more stable than anticipated in the guidance, the RBC analysts said.

RBC said BlackBerry may increase its fiscal 2026 Secure Communications segment revenue guidance by 4% to 13% due to more stable renewals and incremental license revenue, and revise its fiscal 2026 adjusted earnings guidance to a range of $0.10 to $0.13 per share from $0.08 to $0.10.

The analysts said a sustained upward re-rating for the company will depend on strengthening growth in the Internet of Things sector and realization of improved profitability.

RBC maintained the stock's rating at sector perform and the price target at $3.75.