BlackBerry's AI shift earns buy rating from Stifel as stock surges 133% in 2026

BlackBerry has morphed into a 'mission critical' player in tech, making it a buy, says Stifel

BlackBerry - maker of the eponymous mobile phones that dominated the early 2000s - has gotten a new life as a critical software supplier for artificial intelligence-linked applications, priming its stock to gain even more ground, according to Stifel. The investment firm initiated coverage of BlackBerry with a buy rating. It also put a $12 price target on shares, implying 36% from Tuesday's close. "The market still misdefines BlackBerry," analyst Suthan Sukumar said Tuesday in a note to clients. "This is ... a mission-critical software layer in the physical AI stack and a dominant partner to silicon leaders like NVIDIA, Qualcomm, and AMD powering the build-out from cloud to edge, across cars, robots, factories, and medical devices." Shares of BlackBerry have surged 133% year to date as the company continues to refocus its strategy, centering its QNX Software Platform as an infrastructure layer for the automotive, industrial, healthcare and robotics sectors. BB YTD mountain Shares have surged 133% in 2026. There is currently "no superior alternative" to BlackBerry's software platform, meaning it is likely to continue attracting users - a fact that should boost Blackberry's stock, per Stifel. "Unlike the probabilistic AI running above it, the control layer beneath physical systems cannot fail, and QNX has been that deterministic, safety-certified layer for 40 years," Tk wrote. "Our due diligence across silicon partners and distributors helps corroborate that there is no superior alternative to QNX's combination of safety certification and real-time performance at scale." Stifel's call goes against consensus on Wall Street. Of the seven analysts covering BlackBerry, six have a buy or strong buy on the stock, LSEG data shows. BlackBerry shares rose more than 3% following the upgrade.

Stifel initiates BlackBerry stock coverage with buy rating on AI shift By Investing.com

Investing.com - Stifel Canada initiated coverage on BlackBerry (NYSE:BB) with a buy rating and a price target of $12.00, according to a report released by the firm. The stock currently trades at $8.82, representing potential upside of 36% to the analyst's target, with shares up 133% year-to-date. Analyst Suthan Sukumar said the market misdefines BlackBerry despite a year-to-date stock gain of more than 130%. The company is no longer an auto-supplier story but rather a mission-critical software layer in the physical AI stack, the analyst said. BlackBerry operates as a partner to silicon leaders including NVIDIA, Qualcomm, and AMD, powering the build-out from cloud to edge across cars, robots, factories, and medical devices. The firm said a higher quality revenue and earnings shift is playing out that resembles ARM's capital-light royalty-annuity model. Stifel said lower revenue risk, structural margin expansion as the mix shifts toward runtime royalties, and high free cash flow conversion support a premium valuation. BlackBerry's gross profit margin stands at an impressive 76%, according to InvestingPro data, though the platform indicates the stock appears overvalued at current levels relative to its Fair Value analysis. Investors can access a comprehensive Pro Research Report on BlackBerry, one of 1,400+ available reports that transform complex data into actionable intelligence. The firm noted BlackBerry operates in a rapidly expanding, still-undersized total addressable market. The firm said BlackBerry holds a leading competitive position and sees meaningful value to capture as the physical AI market unfolds. Stifel expects sustained acceleration in growth and margin expansion, with potential for execution upside and guidance raises. In other recent news, BlackBerry Limited reported fourth-quarter fiscal 2026 results that exceeded expectations, with first-quarter fiscal 2027 guidance aligning with Baird's estimates. The company announced enhancements to its Unified Endpoint Management platform, incorporating AI-assisted operations and post-quantum cryptography features. In addition, BlackBerry's AtHoc platform achieved FedRAMP Class D re-certification, a significant designation for handling sensitive U.S. government data. The company also renewed its share buyback program, allowing for the repurchase of up to 26.8 million shares, which will be canceled. On the analyst front, Baird reiterated its Neutral rating on BlackBerry with a $5.00 price target. Meanwhile, Canaccord lowered its price target for BlackBerry to $4.40 from $4.60, maintaining a Hold rating. The firm noted that BlackBerry's QNX software is well-positioned in the safety-critical embedded software market and the emerging Physical AI category. These developments reflect BlackBerry's ongoing efforts to enhance its product offerings and strategic financial maneuvers. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.