In fiscal 2015, BlackBerry managed to preserve a cash base of $3 billion and turn cash flow positive on a declining revenue base. In his research note, Gillis wrote he expects to see a continued challenging revenue environment but says the company is well positioned to build on its software assets.
"You have to have the stomach for the volatility that's going to be associated with a company that's in transition,' Gillis told "Tech Bet."
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BlackBerry chief executive, John Chen needs to hit some hefty targets in 2016, which includes rotating the company changing from a legacy model into an enterprise software model. Gillis told CNBC he likes the management team at BlackBerry.
Gillis has a "buy" rating on BlackBerry with a 29 percent upside to his price target from current levels.
Disclosure: Gillis does not own shares of BlackBerry.