Analyst: BlackBerry Could 'Double' If It Continues Down The Right Path

BlackBerry Ltd BBRY hopes that business users -- particularly entrepreneurs -- will eat up its latest smartphone, but that may be small potatoes compared to the bigger market that BlackBerry is after.

Global Equities Research analyst Trip Chowdhry said that the total global IT spend sits at $4.5 trillion. Roughly 15 percent of that (somewhere around $675 million) is from federal agencies from around the world. Of that amount, 15 to 20 percent ($101.25 - $135 billion) is spent on mobile -- the market BlackBerry wants to dominate.

"It cannot be all things to all people like Android is," Chowdhry told Benzinga, referring to the kinds of devices that federal agencies want to purchase.

"You need deep expertise like BlackBerry has."

Chowdhry said that BlackBerry won't be able to obtain every penny from the aforementioned $100 billion market. He believes that the company could "double easily" (in market cap) if it continues down the right path.

However, if BlackBerry makes mistakes or spreads itself too thin, the company could flounder.

Related Link: Why Is This Analyst More Worried About Android Than BlackBerry?

BlackBerry's Advantage

If anything will help BlackBerry succeed with federal agencies, it could be Android's lack of security.

"There's no security in Android," said Chowdhry.

"It's all about exploitation. Google doesn't have the resources to create a completely different, isolated business that doesn't capture any personal information."

Apple Inc. AAPL may not be able to do that either. "Can Apple do that?" Chowdhry questioned.

"No. They are a design company. They are good enough for the consumer [and] enterprise. They are horrible for the level of security needed to secure the President. So the only one in town is BlackBerry. It's not a sexy business.

"But from a pure business, monetization perspective, the leader is BlackBerry."

Chowdhry said that if anyone could compete with BlackBerry in this realm, it's Microsoft Corporation MSFT.

He said that would be a long bet, however, as the company is not really focused on any one particular initiative.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.