BB: Stifel Initiates Buy
Stifel analyst Suthan Sukumar initiates coverage of BlackBerry with a Buy rating
BB Stifel analyst Suthan Sukumar initiated coverage of BlackBerry with a Buy rating and $12 price target.
Despite the stock's 130% rally year-to-date, the market "still misdefines" BlackBerry, the analyst tells investors in a research note.
The firm says the company is no longer an auto-supplier story, but a "mission-critical software layer" in physical AI and a "dominant partner" to silicon leaders like Nvidia, Qualcomm, and AMD.
Stifel believes BlackBerry shares warrant a premium valuation given its lower revenue risk, margin expansion as its mix shifts toward runtime royalties, and high free cash flow conversion.