Stifel Starts BlackBerry Coverage with $12 Target, Cites $950M QNX Backlog
SF•Stifel initiated coverage of BlackBerry with a Buy rating and $12 price target, citing its QNX operating system and roughly $950 million fiscal 2026 royalty backlog. The firm forecasts nearly 10% revenue growth to $602 million and adjusted EBITDA rising to $122 million in fiscal 2027.
1. Initiation Coverage and Price Target
Stifel initiated coverage of BlackBerry with a Buy rating and set a $12 price target, highlighting the company’s strategic position in physical AI infrastructure and signaling confidence in its business model.
2. QNX Business and Royalty Backlog
The brokerage emphasized BlackBerry’s QNX operating system as a mission-critical platform underpinning AI-enabled vehicles, robotics and medical devices, supported by a roughly $950 million royalty backlog in fiscal 2026 that underpins multi-year recurring revenue visibility.
3. Growth Forecasts for Fiscal 2027
Stifel projects BlackBerry’s revenue will increase nearly 10% to about $602 million in fiscal 2027, with adjusted EBITDA rising from $107 million to $122 million, driven by expanding margins and stronger free cash flow generation.
4. Secure Communications Recovery and Government Wins
Beyond QNX, the report notes a turnaround in BlackBerry’s Secure Communications segment, with 5% ARR growth and recent contract wins including the U.S. IRS and Germany’s Bundesbank, suggesting a rebound in government security demand.
