Why BlackBerry might change its name again

Research in Motion became BlackBerry (BlackBerry Stock Quote, Chart, News, Analysts, Financials NYSE:BB) to underline the company’s most important product. Could the company once again pull the same maneuver?

RBC analyst Paul Treiber, in a research update to clients entitled “QNX is the new BlackBerry”, notes that at the recent Consumer Electronics Show in Las Vegas, QNX branding made no mention of the parent company.

“At CES, BlackBerry’s booth reflected only QNX branding, with a new unique colour scheme and no mention of BlackBerry,” Treiber wrote. “While the BlackBerry brand is relevant to its Secure Communications unit, it detracts from QNX. We believe the parent company could potentially re-brand from BlackBerry to QNX at some point, particularly if BlackBerry divests Secure Communications. Re- branding to QNX would reinforce the company as an auto tech provider and could even help lift investor sentiment, in our view.”

QNX is a software company specializing in real-time operating systems (RTOS) and middleware solutions designed for embedded systems. Its flagship product, the QNX Neutrino RTOS, provides a reliable and secure platform for mission-critical applications. QNX’s technology is widely used in automotive systems (e.g., infotainment, advanced driver-assistance systems), medical devices, industrial automation, and telecommunications.

After the sale of its Cylance division, investors may view BlackBerry’s sum-of-the-parts as more compelling, especially since none of them are now a drag on the company’s overall progress, Treiber says.

“Following the sale of Cylance, we believe investor sentiment in BlackBerry’s shares may rise, given: 1) QNX’s improving fundamentals; 2) higher investor visibility to QNX; and 3) a potential divestiture of BlackBerry’s Secure Communications unit says auto-tech player QNX is now the most important part of BlackBerry and a potential name change would reflect that,” he added.

“A divestiture of Secure Communications is possible,” Treiber argued. “Following the sale of Cylance, the remaining portion of BlackBerry’s Cybersecurity unit (i.e. Secure Communications) is profitable and stable. However, given the company’s focus on QNX, we believe that a divestiture of Secure Communications is a possibility, particularly if the unit is a drag on the company’s valuation.”

As reported by the Globe and Mail, Treiber January 10 reiterated his “Sector Perform” rating while raising his price target from (US) $3.25 to $4.00.