BB Stock Clings To September Gain: Analysts Laud BlackBerry's QNX Growth But Flag Stretched Valuation

• Canaccord cut its BlackBerry price target to $9.50 but kept a Hold rating on QNX optimism. 
• QNX posted record $80.3 million revenue, while Alloy Kore’s first design win could add over $100 million to future royalty backlog. 
• Morningstar lifted BlackBerry’s fair value to $6.60 from $5.20, citing QNX and Alloy Kore growth, but said the stock remains richly valued. 

BlackBerry (BB) stock is headed for a monthly gain as investors weigh strong QNX growth, improved profit and a new Alloy Kore automotive design win. Canaccord lowered its price target, while Morningstar raised its fair value estimate, highlighting the company’s improving fundamentals but cautioning that the stock’s recent rally has pushed valuation higher. 

BlackBerry stock traded over 2% lower overnight, heading into Monday. The stock has gained nearly 1% in September after two straight months of losses. 

BlackBerry QNX Leads The Growth

Though Canaccord cut its price target for BlackBerry to $9.50 from $10.30, it maintained a ‘Hold’ rating. The firm said BlackBerry’s fiscal second-quarter (Q2) 2027 results strengthened the investment case for QNX, which generated a record $80.3 million in revenue and posted an 87% gross margin. The company also lifted its fiscal 2027 QNX revenue outlook to $320 million.

Also, BlackBerry’s first design win for Alloy Kore, an automotive software offering is expected to contribute more than $100 million to the company’s future royalty backlog. The revenue impact is expected to become more meaningful around calendar 2029, providing another potential source of long-term growth.

Morningstar Sees Strong Execution

Morningstar analyst William Kerwin said BlackBerry exceeded its Q2 expectations while raising its fiscal 2027 outlook. Core software and services revenue climbed 15% year-on-year to $141 million, with QNX continuing to benefit from greater software content in newer vehicle architectures and advances in autonomous driving.

BlackBerry’s adjusted operating margin rose to 26.3%, up 9 percentage points from last year and more than 5 points from the previous quarter. Kerwin also pointed to the company’s net cash position and stronger cash generation as positive developments.

BlackBerry’s  Valuation Remains The Concern

Morningstar raised its fair value estimate to $6.60 per share from $5.20, citing stronger expectations for QNX and the contribution from Alloy Kore. However, the firm said BlackBerry’s valuation remains elevated after the stock more than doubled in 2026.

Kerwin said QNX expansion and operating leverage will remain important factors in determining BlackBerry’s valuation. Morningstar models high-teens annual QNX growth over five years, alongside operating margins reaching the low-30% range. The analyst said the current market valuation would require faster growth and margins approaching 40%.

BB Stock: Retail Stance

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

A user said, “Blackberry needs to start getting QNX ramped with Aerospace & Defense companies $ITA because the future requires armies of robots and drones, all talking to one another. QNX is exceptionally well-suited for large-scale, mission-critical robotic fleets because it provides deterministic, hard real-time performance and strict microkernel fault isolation.”

BB stock has surged 116% year to date. 

Also see: PEP Stock Heads For Worst Month Since May: PepsiCo Commits $1B To Colombia Expansion, Targets Higher Prices Ahead Of Q3 Earnings

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