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Wells Fargo Likes BlackBerry's Targeted Focus

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One key benefit to BlackBerry's  (NASDAQ: BBRY) business is that it can execute targeted focus to those concerned about security.

Wells Fargo released a note Wednesday morning highlighting the upsell potential of the BlackBerry's Secusmart acquisition. The acquisition gives Blackberry access to Secusmart's eavesdropping prevention software.

Regarding this strategy from BlackBerry to focus on the target security market, Wells Fargo said, "We believe BlackBerry's focus is the right one as it leverages what we believe is its core differentiation. We believe further acquisitions are possible to create further upsell opportunities to drive growth in its targeted regulated industries."

This is much more concern recently on cyber security, given the litany of data breaches, stolen phone data and the use of wi-fi access to monitor cell phone users. Industries with large expense budgets used to protect data and ensure security will be the key target for Blackberry. This can vary from governments, healthcare, finance and energy markets to private citizens who would prefer more security on their electronic devices.

While the cell phone maker is unlikely to push for a sale of itself, investors are bullish of BlackBerry's ability to seek other strategic alternatives. Wells Fargo noted some benefits such as restructuring, divestitures and aggressive multi-platform targeting.

BlackBerry closed Wednesday at $9.71, up 2.1 percent.

Posted-In: Wells FargoAnalyst Color News

 

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