The age of software in this country is changing, and changing rapidly. Investors used to think of large cap Silicon Valley giants Microsoft and Oracle as the go-to stocks for a portfolio. Now new companies are jumping into the forefront, and those are the companies Wall Street is starting to focus on.
In a new report, SunTrust Robinson Humphrey initiates coverage with a new analyst and five top, cutting-edge software stocks to buy. Well-respected on Wall Street for years, John Rizzuto has an impressive resume, and he starts coverage with five impressive companies rated Buy: Blackbaud Inc. (NASDAQ: BLKB), Citrix Systems Inc. (NASDAQ: CTXS), New Relic Inc. (NASDAQ: NEWR), Tableau Software Inc. (NASDAQ: DATA) and Qlik Technologies Inc. (NASDAQ: QLIK).
This company has been serving the nonprofit, charitable giving and education communities for more than 30 years, and it combines technology solutions and expertise to help organizations achieve their missions. Blackbaud works in over 60 countries to support more than 30,000 customers, including nonprofits, K through 12th grade private and higher education institutions, health care organizations, foundations and other charitable giving entities, and corporations. The company offers a full spectrum of cloud and on-premise solutions, as well as related services for organizations of all sizes. Blackbaud is clearly the leading application software company when it comes to the non-profit arena.
The company reported solid first-quarter numbers and may be one that is just out of the normal Wall Street view, as the stock is hardly covered at all. The nonprofit field is gigantic, and to be a leading player also helps in getting more business and retaining current accounts.
The SunTrust team initiates the stock with a $57 price target. The Thomson/First Call consensus price target is $52.33. The stock closed Friday at $51.34
This company is leading the transition to software-defining the workplace, uniting virtualization, mobility management, networking and software as a service (SaaS) solutions to enable new ways for businesses and people to work better. Citrix solutions power business mobility through secure, mobile workspaces that provide people with instant access to apps, desktops, data and communications on any device, over any network and cloud. With annual revenue in 2014 of $3.14 billion, Citrix solutions are in use at more than 330,000 organizations and by over 100 million users globally.
The SunTrust team thinks Citrix remains a solid turnaround story. They also think that the newer business of providing networking and SaaS can drive earnings in the future. In fact, they see earnings power as high as $5.50 a share in five years. Another key is the new SunTrust analyst has covered the stock for 20 years, so he is very well versed with the story and the company.
The SunTrust initial price target for the stock is $77, and the consensus target is $67.53. The stock closed Friday at $66.94 per share.