By Dhirendra Tripathi
Investing.com – BlackBerry (NYSE:BB) shares fell 5% during Friday’s trading as Canaccord downgraded the stock to sell from hold with an unchanged target of $10.
The Reddit-fueled meme stock rally has pushed the stock price higher by more than 35% since May 1, a level analyst T. Michael Walkley finds overvalued.
Walkley’s target is still almost 17% lower from the stock’s current price of $12.
While Walkley believes the BlackBerry management has created a cogent long-term strategy and the business is turning the corner toward stronger trends, he said he awaits more proof on the execution front before becoming more constructive on the shares.
He listed execution on the new product roadmap, evidence of cross-selling opportunities emerging and growing overall software and services revenue as factors that would convince him for a relook of his view.
BlackBerry on Thursday reported its first quarter results for fiscal 2022.
Revenue declined but not as much as the Street had feared. It came at $174 million, falling 15.5% from the year-ago quarter. An average of analysts’ estimates had pegged it to come at $168.25 million.
Adjusted diluted loss per share came at 5 cents.