Raymond James Maintains "Market Perform" on BlackBerry (BB) After Q1 Results

BlackBerry Limited (NYSE:BB) is one of Goldman Sachs’ top penny stock picks. On June 15, Raymond James kept a “Market Perform” rating on BlackBerry after better-than-expected quarterly results.

The company posted revenue of $121.7 million—down 1% from last year but higher than the $112.3 million estimate. Adjusted EBITDA came in strong at $16.4 million (vs. $4.8 million expected), helped by $4.5 million in government grants. BlackBerry remains financially stable, with a current ratio of 1.72 and a debt-to-equity ratio of 0.33.

Despite first-quarter outperformance, the company raised its full-year revenue outlook by just $4 million and Adjusted EBITDA guidance by only $3 million, signaling a cautious tone. Its QNX auto software division added about $5 million above expectations but kept full-year guidance unchanged due to uncertainty, as all four major automakers paused their projections.

BlackBerry’s Annual Recurring Revenue (ARR) stayed flat at $209 million, down 1% year-over-year, and its IP licensing brings in $24 million per year. Raymond James noted that only 50% of Adjusted EBITDA is expected to convert into operating cash flow this year, mainly due to restructuring costs and taxes in Europe.

BlackBerry Limited (NYSE:BB) is a Canadian enterprise software company. It provides cybersecurity, secure communications, and embedded systems software to governments, automakers, and industrial clients. Its key products include BlackBerry QNX (used in over 255 million vehicles), BlackBerry UEM for endpoint management, BlackBerry AtHoc for crisis communications, and BlackBerry IVY, a vehicle data platform developed with AWS.

While we acknowledge the potential of BB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Nuclear Energy Stocks to Invest in for the Next Decade and 10 Best Healthcare Penny Stocks to Buy According to Analysts.

Disclosure: None. This article is originally published at Insider Monkey.