No-Moat BlackBerry’s automotive software is strong, but its cybersecurity business is weaker

We believe BlackBerry has established itself in rapidly growing markets that benefit from secular security and connectivity trends, but we believe it has a long way to go to gain a sustainable competitive advantage. We like the company’s automotive software portfolio, but we see its larger enterprise security division as weaker, which negatively impacts results. BlackBerry sells software for cybersecurity applications for enterprises and embedded applications such as cars. Its enterprise security products focus on endpoint security. In the automotive market, BlackBerry’s QNX software is the basis for automotive chips, safety systems and cabin features.