Citron's Andrew Left Makes A Bold Claim: BlackBerry Could Be The Next NVIDIA

Notable short-seller Andrew Left demonstrated unusual optimism Thursday with a positive report on BlackBerry Ltd BBRY, a firm he posited to be the next NVIDIA Corporation NVDA.

The Citron Research founder said NVIDIA’s two-year value pop from $5 billion to $85 billion largely reflected its potential in non-niche markets, such as autonomous driving, artificial intelligence and data-center technology.

Today’s BlackBerry seems to boast similar prospects. By Left’s estimates, the company merits confidence by its transition from obsolete handsets to more in-vogue secured software.

“When Wall Street shifts its frame of expectations toward the future, and gets over their legacy business, watch out,” he wrote.

Cars And Things

BlackBerry breaking into new markets through its Internet of Things line, including its Radar asset tracking product made to entice transportation and logistics players. But it’s real potential is in the autonomous vehicle space, Left emphasized.

The company’s QNX operating system is presently installed in 60 million vehicles from about 40 automakers, and some experts laud the system for its safety certification superior to that of Microsoft Corporation MSFT’s Windows and certain Linux models.

While bears argue that the likes of Apple Inc. AAPL and Alphabet Inc GOOG GOOGL will soon overcome BlackBerry and seize its share of the auto market, Left isn’t so convinced. He cited the parable of Mobileye NV MBLY, whose 16 million installed base inspired a buyout by Intel Corporation INTC.

“We think the parallels to Blackberry are compelling,” Left wrote. “Given its market-leading automotive installed base, its IP portfolio, its background in secure computing, its having quenched its cash burn, and added a fresh billion in cash for R&D, Blackberry isn’t going away.”

Auto-partner NVIDIA has enough faith in BlackBerry’s QNX that it is already investing in engineers with system-specific skills.

Considering these factors, Left predicted two possibilities: either BlackBerry broaches a two-year price target of $20 or is targeted for a high-premium buyout.

At the time of publication, shares were trading around $11.50, up 8.9 percent on the day.

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