BlackBerry profits coming soon? RBC thinks it’s back in black

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After a decade of decline, the Royal Bank of Canada is finally putting positive pressure on native company BlackBerry, upgrading its rating to “sector perform.”

Equity analyst Paul Treiber wrote in a note dated March 31 that:

The risks with BlackBerry’s turnaround appear to have diminished. The company is no longer dependent on [Service Access Fees]-related cashflow and the liability from hardware has been largely eliminated. As such, we are removing our Speculative Risk qualifier. Investor focus will shift to the growth of BlackBerry’s software business; new opportunities are emerging, but they are difficult to value at the moment.

Service Access Fees are recurring charges paid by BlackBerry’s clients. They have been diminishing since the company has effectively stopped tending to its native mobile OS product. Waterloo has been focusing on security software as a service and sending hardware manufacturing to partner companies like TCL.

BlackBerry CEO John Chen projected in the most recent earnings call that the company will make a profit this fiscal year.

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About The Author
Jules Wang

Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.