BlackBerry (BB) needs to show evidence of top-line growth or continued momentum of its general embedded market, or GEM, segment to sustain its upward re-valuation, RBC Capital Markets said in a Thursday note.

The company's shares have already re-rated upward to multiyear highs driven by optimism over its GEM segment, and greater visibility into GEM revenue, growth, backlog and backlog conversion could boost valuation re-rating further, the brokerage said.

BlackBerry previously said GEM accounted for 20% of the revenue under its QNX business, implying that GEM's revenue growth has averaged low-to-mid teens over the last year and that the segment is likely growing faster than QNX, according to the note.

For fiscal Q1, RBC expects BlackBerry to reach the high-end of its guidance and close in on the consensus forecast of $138 million in revenue. The company is set to release its fiscal Q1 results on June 25.

RBC reiterated its sector perform rating on BlackBerry, with a $4.50 price target.

Shares of the company were down 3.9% in Thursday trading.

Price: 8.49, Change: -0.35, Percent Change: -3.91