from Royal Bank 07:54 AM EST, 12/15/2020 (MT Newswires) -- BlackBerry Ltd. (BB.TO) shares have rallied approximately 60% in the past month, but these gains do not reflect high expectations for the company's upcoming third quarter earnings, RBC Capital Markets said on Tuesday.
Analyst Paul Treiber, who raised his price target on BlackBerry shares to US$7.50 from US$5, and maintained a Sector Perform rating, said the valuation re-rating reflects a rebound from trough levels.
The stock rose $0.09, or 1.1%, to US$8.25 in pre-market NYSE trading on Tuesday.
"The rally in BlackBerry shares commenced on renewed investor enthusiasm for BlackBerry's patent portfolio and QNX automotive opportunity," Treiber said in a note to clients.
The analyst said these two businesses account for an estimated US$448 million in annual revenue, but he believes represent the most upside optionality for investors.
BlackBerry reports Q3 results on December 17.