Top Software Disruptor Picks for 2016 From RBC

Technology

Published: December 21, 2015 8:45 am

Last Updated: January 13, 2020 3:52 pm

Most aggressive investors like to keep a nice slug of the top technology stocks in their portfolios, but 2015 was a rough year for many of the solid companies in the sector, and 2016 could be the year that many bounce back. Most of the top firms on Wall Street we cover remain positive on technology, especially the software arena, and a new report from RBC highlight the software stocks the firm likes for next year.

RBC remains focused on what it refers to as next-generation companies that have the ability to grow margins, and what they also term as the “software disruptors.” The analysts are very bullish on seven top companies they dub the SPAWNS, and we highlight the four large cap companies that may have the largest upside potential in 2016. All are rated Outperform at RBC.

Adobe Systems

This is a high-profile, old-school software company that makes sense for growth accounts. Adobe Systems Inc. (NASDAQ: ADBE) operates in three segments. The Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote and monetize their digital content.

The Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management and cross-channel campaign management solutions, as well as video delivery and monetization to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers and chief revenue officers.

The Print and Publishing segment offers products and services, such as eLearning solutions, technical document publishing, Web application development and high-end printing, as well as publishing needs of technical and business and original equipment manufacturers printing businesses.

Adobe is also reasonably safe route for investors looking to own a company with marketing automation product, which has become huge.

The RBC price target for the stock is $112, and the Thomson/First Call consensus price target is $103.05. Shares closed on Friday at $91.31.