Analysts Reaffirm Buy, Highlight 18% Software Booking Growth at BlackBerry
Analysts from Morgan Stanley, BofA Securities and TD Cowen convened on February 11 after BlackBerry shares slid 8% to reassure investors about its software segment, reiterating buy ratings and an average $10 price target. They cited 18% year-over-year growth in recurring software bookings and forecast margin expansion to 35% by fiscal 2027.
1. Analyst Call Calms Share Slump
On February 11, top analysts from Morgan Stanley, BofA Securities and TD Cowen hosted a joint conference call to address an 8% drop in BlackBerry’s stock over the prior week. The group sought to rebuild confidence by outlining recent wins in product deployments and contract renewals within the software division.
2. Software Bookings Growth And Outlook
During the call, the analysts reported that recurring software bookings grew 18% year-over-year in Q4, driven by increased demand for endpoint security and embedded IoT solutions. They indicated the division is on track to deliver 35% operating margins by fiscal 2027, up from 28% last year.
3. Ratings And Price Target Reaffirmation
All three firms reiterated buy ratings on BlackBerry and maintained an average price target of $10, citing a robust pipeline of license renewals and cross-selling opportunities. They noted that accelerating software ARR and margin improvement remain key catalysts for the stock’s next leg higher.