Analyst Brushes Off BlackBerry QNX Software Controversy

Mobile name BlackBerry Ltd (NYSE: BB) is getting some redemption from yesterday's news that a cybersecurity flaw in an older version of its QNX RTOS software could be risky for cars and medical equipment that employ the technology, exposing these systems to attackers. Its stock is up 1.6% at $9.82 this morning, after Canaccord Genuity pushed back, upgrading BB to "hold" from "sell," and asserting that it does not think the flaw will have a major impact on "QNX's strong design wins in the automarket," adding that its long-term prospects will be minimally affected. 

Blackberry stock, BB stock, BB stock price

The equity has seen a dramatic slide since its days as Reddit's darling pushed the equity as high as the $28 level in late January. Another rally in June was quickly snuffed out by the $20 region, though BB looks to have found support at the 200-day moving average, and is still sporting an over 100% year-over-year lead. 

The equity could be ripe for more upgrades and/or price-target hikes, especially considering the 12-month consensus price target of $8.36 is a hefty 13.6% discount to last night's close. What's more, the stock sported two "hold" ratings, and five "strong sell" ratings heading into today. 

A shift in the options pits could also put the wind at BB's back. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio sits higher than all but 2% of readings from the past 12 months. This suggests long puts are being picked up at a much quicker-than-usual clip. 

Disclaimer: Copyright © 2021 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. This material is reproduced with the prior written consent of S&P DJI. Please ...

How did you like this article? Let us know so we can better customize your reading experience.