Wireless is here to stay, and growing as fast as any industry in the world. The days of the landline phone may be numbered as wireless speed, latency and coverage gets better every year. In a new report, the wireless analysts at Deutsche Bank maintain that investing in the sector is easy, and their five top names to buy may dominate the business in the years to come.
With two new Long Term Evolution (LTE) advanced technologies grabbing attention, and LTE broadcast leading the way for potential broadcast innovation, here are the five stocks to buy at Deutsche Bank now.
Ciena Corp. (NYSE: CIEN) is a company that many analysts, including the Deutsche Bank team, believe could be the top beneficiary of the increase in wireless spending. Ciena management is optimistic about its prospects in the United States and in markets such as Brazil and India, where it has landed Tier 1 design wins. Recently, it also won a contract from Cablevision Argentina, which is a leading cable TV and Internet services provider in Argentina, to enhance its broadband network countrywide. The company is rapidly reducing its losses, and the earnings growth outlook for the next five years is also quite promising. According to Yahoo! Finance, investors can expect Ciena’s earnings to improve at an annual rate of 16.7% for the next five years. The Deutsche Bank price target for the stock is $26. The Thomson/First Call estimate stands higher at $27.94. Ciena closed Monday at $23.60 a share.
CommScope Holding Co. Inc. (NASDAQ: COMM) provides connectivity and infrastructure solutions for wireless, business enterprise and residential broadband networks in the United States, Europe, the Middle East, Africa, the Asia Pacific, Central and Latin America and Canada. The company operates in three segments: Wireless, Enterprise and Broadband. The company had a very successful 2013 initial public offering, and the stock has rallied recently after selling off after the deal. The Deutsche Bank price target is $24, and the consensus is at $24.91. The stock closed Monday at $24.43.
F5 Networks Inc. (NASDAQ: FFIV) has been on fire over the past six months, so a recent pullback may provide a better entry point for investors. The company provides solutions for an application-based world. The company helps organizations seamlessly scale cloud, data center and software-defined networking (SDN) deployments to successfully deliver applications to anyone, anywhere, at any time. F5 Networks solutions broaden the reach of information technology through an open, extensible framework and a rich partner ecosystem of leading technology and data center orchestration vendors. This approach lets customers pursue the infrastructure model that best fits their needs over time. The Deutsche Bank price target is $120, and the consensus target is $118.63. Shares closed Monday at $107.87.
Mavenir Systems Inc. (NYSE: MVNR) is a leading provider of software-based communications solutions that enable mobile service providers to deliver high-quality Internet protocol based voice, video, rich communication and enhanced messaging services to their subscribers globally. Mavenir’s mOne software platform has enabled leading mobile service providers to introduce the industry’s first live network deployment of voice over LTE (VoLTE) and the industry’s first live deployment of next-generation Rich Communication Services 5.0. The Deutsche Bank price target was recently raised to $20. The consensus target is $18.75. Mavenir closed Monday at $18.45.
Qualcomm Inc. (NASDAQ: QCOM) remains the 900-pound gorilla in the wireless space. A new Qualcomm technology used to create a series of reliable, on-the-fly wireless networks at the South by Southwest Interactive conference earlier this month may soon provide high-end mobile-device users across the United States with a new type of digital experience — one that combines their live presence and digital identity. The GIMBAL smartphone technology, which was just transferred from Qualcomm Labs to the chip maker’s retail services unit, may also prove a watershed for cellular consumers willing to trade location privacy for shopping deals and convenience. Deutsche Bank raised its price target from $76 to $86. The consensus target is $81.43. Qualcomm closed Monday at $77.74.
As the wireless world continues to explode, the companies that focus on new network applications that support increasing mobile use are the companies that will win the battle. Mobile computing via smartphones and tablets is totally changing the game for everything from advertising to entertainment. Stocks that cater to and support the technological change will be the ultimate winners.