RBC confirms 11$ US 02:16 PM EST, 12/14/2018 (MT Newswires) -- RBC Capital has reiterated its Sector Perform and US$11 TP on Blackberry, noting the company's shares have declined 14% (vs. S&P500 -3%) since the US$1.4 billion Cylance acquisition was announced. The acquisition reduces BlackBerry's net cash by $3.39/share in Q3 to an estimated $0.98/share in Q4, which removes a key backstop for the stock and is likely to amplify share price volatility.
RBC expects Q3 results essentially in line with the Street, with upside possible due to the settlement with Nokia. "It's possible that BlackBerry may recognize a portion of the settlement upfront, which could lift Q3 IP licensing revenue above our $56 million estimate," the brokerage adds.
BlackBerry is reporting Q3 on December 20. RBC is forecasting adj. EPS of US$0.02, matching the Street.
Price: 10.13, Change: -0.15, Percent Change: -1.46