BMO’s top analyst Tim Long reiterates a Market Perform rating on shares of BlackBerry Ltd (NASDAQ:BBRY), while slightly raising the price target to $10.00 (from $9.00), after the smartphone maker reported mixed fiscal first-quarter results on Friday. While BlackBerry’s profits surged on account of the $940 million one-time arbitration award from Qualcomm, revenues fell significantly as the Software segment missed expectations.

Long commented, “With the continued shift toward a software-centric model, we are encouraged by various growth areas including connected car and IoT. On the connected car front, BlackBerry is gaining traction with semiconductor companies like Qualcomm and Nvidia. In Radar, we are pleased to see repeat purchases from existing customers as well as new customer additions including FedEx. Management has made clear of their intent to further invest in these growth businesses both organically through R&D, as well as through M&A, where they look to focus on adding to their cyber security, machine learning, and connected car portfolio. While progress in these areas is encouraging, it remains to be seen how much traction Blackberry will capture longer term, as current impact on the top line is minimal.e, BlackBerry recorded major wins in embedded software and IoT, and made enhancements to several enterprise software offerings.”

“While the beginning stages of BlackBerry’s turnaround show promise, we are remaining on the sidelines as we would like to see further upside opportunities for software sales and management’s goals for the year seem more challenging than they did three months earlier,” the analyst concluded.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Tim Long has a yearly average return of 16.8% and a 70% success rate. Long has a 15.9% average return when recommending BBRY, and is ranked #139 out of 4592 analysts.