BlackBerry upgraded to Buy as Q4 earnings soar and debt reduction strengthens balance sheet

BlackBerry has been upgraded to a Buy rating following its strong operational turnaround highlighted by record Q4 earnings and a strategic partnership with Nvidia. The company reported its eighth consecutive quarter of positive GAAP net income, with Internet of Things (IoT) revenue growing 20% year-over-year and a $950 million royalty backlog. A share price rise above $5.04 will trigger a forced conversion of $200 million in convertible debt, further strengthening BlackBerry's balance sheet. Additionally, growth in Secure Communications and patent/licensing deals, along with raised full-year guidance, suggest further upside potential and possible cash windfalls from partnerships like Malikie and Arctic Wolf.