BlackBerry Ltd. ( BB ) is drawing renewed attention from Wall Street as analysts reassess its prospects following momentum in its QNX automotive software business and stabilizing trends in secure communications.

The company is securing new contracts, expanding into adjacent markets, and benefiting from a recovering auto sector that is restarting delayed projects.

TD Securities analyst Daniel Chan resumed coverage of BlackBerry with a Hold rating, down from a Buy, and increased his price target to $5 from $4, citing operational progress but limited upside following the stock’s 61% rally since December 2024.

Chan pointed to easing macro pressures that helped boost demand for QNX developer licenses, driving about 15% growth last quarter. He emphasized QNX’s competitive strength, citing an eight-figure deal in Europe with a tier-1 automaker and added momentum in China.

He also said QNX’s success could extend to areas such as industrial automation, where BlackBerry has already landed a major contract.

Also Read: BlackBerry Stock Slips Despite Strong Q2, CEO Highlights Shift To System-Critical Software And Margin Gains

After divesting Cylance, Chan expects Secure Communications to stabilize, supported by government contracts. While net revenue retention remains at 93%, he views annual recurring revenue growth as a positive sign.

For fiscal 2026, Chan projects that Secure Communications revenue will decline 22% year over year, QNX revenue will increase 12%, and adjusted EBITDA will total $97 million.

Chan derived his $5 target by applying valuation multiples of 9.5x to 10.5x to calendar-2026 EBITDA for Secure Communications and 37.5x to 38.5x for QNX, reflecting a premium stance on its automotive software positioning. He concluded that the current share price already factors in much of the progress.

In a related note, BlackBerry’s stronger-than-expected Q2 results and raised guidance led analysts to revise their forecasts upward. The company posted EPS of $0.04 on revenue of $129.6 million, both ahead of estimates, and raised its full-year outlook to EPS of $0.11–$0.15 on revenue of $519–$541 million.

Baird raised its price target to $5.50 from $5 while maintaining a Neutral rating, and RBC Capital lifted its target to $4.50 from $4 with a Sector Perform rating, reflecting cautious optimism about BlackBerry’s near-term momentum.

Price Action: BB shares are trading lower by 3.89% at $4.56 at the last check on Friday.

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